A Sizing Rule Card You Can Check in Thirty Seconds

[Fairman]

A Sizing Rule Card You Can Check in Thirty Seconds

Scenario: you want a fast, error-resistant routine for every trade. The following card summarizes the sizing steps, and the drill is to run it on a sample trade.

The card has six lines. One: account equity now. Two: risk percent, from the plan. Three: risk in currency, which is line one times line two. Four: stop distance in pips, from the chart. Five: pip value per standard lot in account currency. Six: lot size, which is line three divided by the product of lines four and five, rounded down to the lot step.

Run it. Equity 7,500 dollars. Risk 1 percent. Risk amount 75 dollars. Pair AUD/USD, stop 30 pips. Pip value 10 dollars. Lot size: 75 divided by 300 is 0.25 lots.

Then the sanity checks. Does the lot size match the typical size for this pair and stop? Is the spread below your threshold relative to the stop? What is the total open risk after this trade? Is any correlated trade open? Is a high-impact event near?

Write the result in the journal before sending the order: lot size, risk in currency, and risk percent.

A written card prevents errors made when tired or rushed. After a few weeks, you will do most of it automatically, but the card remains the reference.

Takeaway: standardize the routine so that sizing is never a decision.

Practical step: write your own six-line card and tape it beside your screen.