How to position the size of  trade in trading

In this blog we will discuss how to select the size of trade and simple rules in trading. Read this blog very carefully it will change your trading method in stock market.

Mistake in trading

FOMO - It stand for Fear of missing out

1. This is the biggest mistake trader do while trading. Trader should always avoid this mistake
2. What FOMO makes you to do ? 
3. Once a trade setup emerge it is the FOMO that leads to buy everything at once . This is a huge trap and it leads to lot of losses.
4. When stock gives breakout traders jumps into trade and buys all the quantity . You should always remember the odds of trade failure. Trade failures are highest when there is  breakout happens.

Solution for FOMO

1. To solve this problem traders should always follow the reverse pyramid method in trading.
2. Why this work ? Reverse pyramid will allow you to loose less money when you are wrong and win more money when you are right.
3. This is the only method you can grow your account.
4. In reverse pyramid you will allocate only 25% of your trading capital and remaining capital after the confirmation of breakout.
5. Why this method work ?
6. If stock breakout is not confirmed and hit your stop loss - you will book loss on your 25% capital .
7. If stock breakout confirmed you will invest all your money and ride your profit.
8. In stock market if you want to grow your account you show learn how not to loose money or how you can loose less and win more.
9. Reverse pyramid allow you to do so

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