Live Trading AUDUSD – How to risk manage using position sizing

Hello traders, it is Thiru Napaggan here founder of Master the Markets, Elite Traders
Conference, and Traders Open Day.

Today in this video, I am just going to show you in terms of real life trading how we actually risk
manage. Now, looking at this particular trade over here, I am looking at the AUDUSD. What kind
of a trade are we doing here? We are doing accounting Q3 trade on a downtrend. I am actually
looking towards taking this shot. What I am looking to do over here, traders, is that this is the
confirmed swing low according to our proprietary smart money indicator. The Smart Money
Indicator quantifies swing highs and swing lows. Therefore, what I am looking to capture is a
swing high. I am looking at this particular trade that has been circled over here to fall further
down. Based on that, we have placed a position on this particular trade in terms of entering on
the “close”. Stop loss on the “high”. That is what we have at the moment. Let me show you how
we risk manage this particular trade. The entry will be on the “close” at .7776 and the stop loss
is at .7814. As we add our spread onto the order, what do we then have? Let’s then take a look.
Now, as we enter live our stop loss is going to be .7814 and the take profit at .7892. I am going
to punch all this figures into this website called “earn forex”. How do you then basically do your
1% risk management? First, your account currency is going to be GBP. Account size in this
instance is going to be 100000 pounds. That is going to be 1%, so 1000 pounds. The trade risk
is 35 pips. Then we need the ask price, and I will show you how to get, it is 1.4343. I will fill that
information on the box. Make sure to also select the currency pair. Afterwards, click on the
calculate button and it will tell me how many lots. The result I 4.098, which can be rounded up to
4.1. Remember that you always must know your draw down, but this is a very simple way of
doing your risk management. This is a direct market risk based on lots. Usually one lot is
roughly about $10 a pip. Based on all of that how this calculation has been done, this website is
very useful “earn forex” is what I am looking at. If you can punch all the information in, it will
calculate it for you. Risk management in a 5000 or 10000 account or whatever may be is very
important. I guess that has been very useful, risk management is one of the most important
things if you want to take this seriously and become a professional trader to make steady

That is all from me today on this video. As we always say; stay disciplined, follow your trading
plan, and keep Trading Like a Master.

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