To sustain a long position what lot size do you need?

[Perfectbaby]

I want to know now that the market is not stable and hasn't shown a clear direction or movement, we know that anything is likely and possibly to happen. As trader who is trading and you happens to fund your account with at 500$ while trading currently and as the market unstable what lot size do you think to be using to sustain a longer position while trading so that you wouldn't be that liquidated. Of course as we know, before opening a position you should know what lot size you should be using at the main time to keep your position for long time without getting drained. Is 0.01 ideal enough?

[Oshosondy]

Of course as we know, before opening a position you should know what lot size you should be using at the main time to keep your position for long time without getting drained. Is 0.01 ideal enough?

I wanted to trade silver on TradeFi few days ago, 0.01 lot is about $3500. That is fucking too much, and so it is also on traditional markets that are not on crypto exchanges.

In crypto we are using leverage which is easy to estimate and make people not to get confused. I can trade silver derivatives on crypto exchanges with just $10, but which is not possible on TradeFi and on traditional market for commodities and others.

If you are referring to bitcoin, best are crypto exchanges. I could not even see bitcoin on TradeFi.

My advise is to use not more than 5x for bitcoin. 2x for low volatile coins like ethereum and solana. 0.2x for volatile coins and be very careful of the volatile coins.

For long maintenance, use just 1.5 to 2.5x for bitcoin.

[obuoma]

If I understanding you correctly, your question is about holding trade for long and not to place a long position (which is a buy). If this is correct, then the answer to your question is that your lot size depends on your equity, your risk appetite and your target. If you have huge equity and have realistic target, you can expose 1% of your equity to risk and hold it for as long as necessary. Greed must be avoided in long term holding else there will be no way to avoid over leveraging which can burn the account very fast.

[EL MOHA]

I want to know now that the market is not stable and hasn't shown a clear direction or movement, we know that anything is likely and possibly to happen. As trader who is trading and you happens to fund your account with at 500$ while trading currently and as the market unstable what lot size do you think to be using to sustain a longer position while trading so that you wouldn't be that liquidated. Of course as we know, before opening a position you should know what lot size you should be using at the main time to keep your position for long time without getting drained. Is 0.01 ideal enough?

I wouldn’t be talking about lot size because my discussion will be centered to crypto. For a capital of $500 which is seriously quite a capital at least i would say the duration of how long you want to hold the trade actually goes a long way but nonetheless Long term hold requires very small leverage to able to handle the turbulence of the market. I will actually not tell anyone to exceed 1.5x for bitcoin and any thing like Altcoin shouldn’t be more than 1x although I will even advice going for spots buying with that amount if it’s Altcoins.

[Alphakilo]

I want to know now that the market is not stable and hasn't shown a clear direction or movement, we know that anything is likely and possibly to happen. As trader who is trading and you happens to fund your account with at 500$ while trading currently and as the market unstable what lot size do you think to be using to sustain a longer position while trading so that you wouldn't be that liquidated. Of course as we know, before opening a position you should know what lot size you should be using at the main time to keep your position for long time without getting drained. Is 0.01 ideal enough?

The idea of using 0.01 lots, is ideal enough and ensures you survive long in the market because the ultimate goal in an unpredictable market with half hazard movement is to survive and to survive long enough, one must look so much to position sizing and leverage.
Therefore the 0.01 lots size is a professional and wise choice to stick with till there is a clear cut direction of the market.

[BitMaxz]

There's no maintained lot size when it comes to trading with crypto because crypto exchanges' trading rules only use ticks, not a lot size the same as what forex exchanges use nowadays.

I don't have a fixed tick size; it always depends on risk tolerance, but I always calculate the risk before opening a trade. I always check the trading rules first to understand how much per tick, contract size, and minimum order and then calculate everything for every altcoin that I want to trade because not all have the same tick size.

[Asiska02]

I wouldn’t be talking about lot size because my discussion will be centered to crypto. For a capital of $500 which is seriously quite a capital at least i would say the duration of how long you want to hold the trade actually goes a long way but nonetheless Long term hold requires very small leverage to able to handle the turbulence of the market. I will actually not tell anyone to exceed 1.5x for bitcoin and any thing like Altcoin shouldn’t be more than 1x although I will even advice going for spots buying with that amount if it’s Altcoins.

Spot trading has been a good means of trading that helps minimize risks while still targeting to reach the top of the market you’re trading towards, I mean reaching the anticipated and expected point overall. $500 is such a large amount that when you’ve well analyzed the market, and going for a bullish sentiment in the market, it is safer and less risk to enter spot trading with it, it’ll help limit instances of liquidation of account. The best approach for this kind of market is to be sure that the market will pump and also not overly relying on altcoins without strong potential and conviction on them. They’re better taken on altcoins with good prospect to grow.

[Odusko]

I want to know now that the market is not stable and hasn't shown a clear direction or movement, we know that anything is likely and possibly to happen. As trader who is trading and you happens to fund your account with at 500$ while trading currently and as the market unstable what lot size do you think to be using to sustain a longer position while trading so that you wouldn't be that liquidated. Of course as we know, before opening a position you should know what lot size you should be using at the main time to keep your position for long time without getting drained. Is 0.01 ideal enough?

Since we are in a crypto trading board,ni will be using leverage because lots is associated with forex trading which is not the case here, the first things that sustain you portfolio position is  risks management and leverage usage how far you are from your liquidation zone and what sieze of portfolio you keep active for as long as possible. This are the most important things in trading much more important than your portfolio and amount you set out to trade with, 1% of $500 is still very ok enough to trade with in other to avoid risking your entire bankroll on a single volitile assets.

[Perfectbaby]

Of course as we know, before opening a position you should know what lot size you should be using at the main time to keep your position for long time without getting drained. Is 0.01 ideal enough?

I wanted to trade silver on TradeFi few days ago, 0.01 lot is about $3500. That is fucking too much, and so it is also on traditional markets that are not on crypto exchanges.

In crypto we are using leverage which is easy to estimate and make people not to get confused. I can trade silver derivatives on crypto exchanges with just $10, but which is not possible on TradeFi and on traditional market for commodities and others.

If you are referring to bitcoin, best are crypto exchanges. I could not even see bitcoin on TradeFi.

My advise is to use not more than 5x for bitcoin. 2x for low volatile coins like ethereum and solana. 0.2x for volatile coins and be very careful of the volatile coins.

For long maintenance, use just 1.5 to 2.5x for bitcoin.

To be honest, it is actually what matters when it comes to trading.
You know, A friend of mine told me of his lost while trading of FX, he was to use a lot size of 0.01 and he mistakenly
uses 0.50 and he ends up emptying himself. That is to say that his equity drained off. According to him, he was on +50$
profits but before he knew it he got wipe off without him knowing it was a common mistake and you should know how frustrating that could be with hope to remain on the market for long but it happens that he didn't noticed the lot size was far above what he was expecting to use to trade.

[DPHOR]

There are people are not that patient enough to trade and whenever they jump into trading they expect the market to reacts according to how they expected the market to go. Trading is not as easy as you may think, to me wouldn't mind encourage a trader to hold than trading because loses are easily being achieve than the profits you should be making from trading. If the market is not that favorable to you as the trader then hold back some of the coin and wait for the market to get stabilized before you could resumed your trade.

[IjawMan]

Is 0.01 ideal enough?

Before you questioning if 0.01lot size is ideal enough it gives the impression that this is the position you can afford to risk your money at lest, making any above this is a high risk tolerance for you to accept. For this I will say, yes, is ideal enough. Do not overstep your risk tolerance boundary and do not greedy and impatient, this is a time to trade with extreme caution and not to assume market direction base on temporary price movement which is susceptible to a sharp reverse.

[knowngunman]

If your concern is about liquidation, then lot size should not be your problem because lot size alone can not save you from liquidation but risk management can save you when you apply it accurately.

How much are you willing to risk? Because lot size is just about how fast or slow you can get liquidated. Without applying stop loss, lot size can only delay your liquidation but it can not stop it.

Your propose lot size is ideal for beginners thou.

[Perfectbaby]

Is 0.01 ideal enough?

Before you questioning if 0.01lot size is ideal enough it gives the impression that this is the position you can afford to risk your money at lest, making any above this is a high risk tolerance for you to accept. For this I will say, yes, is ideal enough. Do not overstep your risk tolerance boundary and do not greedy and impatient, this is a time to trade with extreme caution and not to assume market direction base on temporary price movement which is susceptible to a sharp reverse.

Well that is right and for sure it's not advisable to be extremely greedy while trading and is good to be that applying cautious while trading because even with the risk tolerance one could lose entirely if they don't make the right decision and analysis and the market moves in the opposite direction then such person could lose entirely.
And Yes, trading is not that really easy as we may think.

[Dr.Bitcoin_Strange]

You can easily be liquidated using 0.01 lot size, considering your account size $500, I suggest you go for a less lot since you are speaking of sustaining a long position, if you are a day trader and depending on your experience too, you can be okay with that 0.01 but since you are considering swing trading, I think it's best you go for a less lot size. Personal, if am trading gold, I like to use 0.01 for my $100 margin but I don't hold trade till the next day.

[Rruchi man]

I want to know now that the market is not stable and hasn't shown a clear direction or movement, we know that anything is likely and possibly to happen. As trader who is trading and you happens to fund your account with at 500$ while trading currently and as the market unstable what lot size do you think to be using to sustain a longer position while trading so that you wouldn't be that liquidated. Of course as we know, before opening a position you should know what lot size you should be using at the main time to keep your position for long time without getting drained. Is 0.01 ideal enough?

Based on the amount of money you're willing to risk in the market, traders use the position size calculator to determine the lot size they are willing to use in a trade to ensure that even if they lose, they will not lose too much.

 Using proper lot sizes calculated by the Lot Size Calculator is proper use of risk management in trading, and if you are able to properly manage your risk in trading, you will be able to stay longer as a trader in the market than someone who trades recklessly using a fixed lot size for all their trades and does not even have an idea of how much they are willing to risk per trade.

[Mpamaegbu]

I want to know now that the market is not stable and hasn't shown a clear direction or movement, we know that anything is likely and possibly to happen.

Yes, anything can happen when market direction isn't clear enough for entry. The best thing to do at a time like that is to stay off charts. Close your device, take a walk or sleep or play some video games, watch movies or read anything. Do anything you want but don't trade. It's only advisable to get into trades when the probability of winning trades is highly in your favour. Forcing trades is analogous to gambling.

As trader who is trading and you happens to fund your account with at 500$ while trading currently and as the market unstable what lot size do you think to be using to sustain a longer position while trading so that you wouldn't be that liquidated.

With good Money and Risk Management, 0.03–0.04 lotsizes won't be a bad idea on a $500 account; conservatively. Aggressive traders will up their risk on that account and do higher sizes. For me, the last lotsize I will want to trade on that amount is 0.01. Nah! It's too small. It's only fear that can make someone on that account size trade that small. That's not Money Management. That's trading with fear.

[Perfectbaby]

I want to know now that the market is not stable and hasn't shown a clear direction or movement, we know that anything is likely and possibly to happen.

Yes, anything can happen when market direction isn't clear enough for entry. The best thing to do at a time like that is to stay off charts. Close your device, take a walk or sleep or play some video games, watch movies or read anything. Do anything you want but don't trade. It's only advisable to get into trades when the probability of winning trades is highly in your favour. Forcing trades is analogous to gambling.

As trader who is trading and you happens to fund your account with at 500$ while trading currently and as the market unstable what lot size do you think to be using to sustain a longer position while trading so that you wouldn't be that liquidated.

With good Money and Risk Management, 0.03–0.04 lotsizes won't be a bad idea on a $500 account; conservatively. Aggressive traders will up their risk on that account and do higher sizes. For me, the last lotsize I will want to trade on that amount is 0.01. Nah! It's too small. It's only fear that can make someone on that account size trade that small. That's not Money Management. That's trading with fear.

That could be too small for you but to be honest, it's actually worth using because that will reduced someone risk on a big time and the amount to lose could be that minimal considering on their amount fund on their account.
A wise and reasonable trader should be able to know that going higher than that could put their account on a higher risk if they don't do their analysis properly before jumping into the market couples with how the market is not that friendly.

[AVE5]

If I understanding you correctly, your question is about holding trade for long and not to place a long position (which is a buy). If this is correct, then the answer to your question is that your lot size depends on your equity, your risk appetite and your target. If you have huge equity and have realistic target, you can expose 1% of your equity to risk and hold it for as long as necessary. Greed must be avoided in long term holding else there will be no way to avoid over leveraging which can burn the account very fast.

Nice one of you as it seemed that you just illustrated what was on my mind.
For a trading positions to be sustainable in the long term in the market showing this kind of indirect phase, it's always important to avoid excessive leverage because slight opposite movement of the market can cause you serious liquidation.
So to manage your equity, going on 1% open trades should be enough for the long term sustainability. It's also important to be aware of greeds because at times we can be tempted to increase the trading positions either to cover lost or because we've been so lucky to attain success consecutively and hoped it has come a lucky day.

[Pandorak]

I want to know now that the market is not stable and hasn't shown a clear direction or movement, we know that anything is likely and possibly to happen. As trader who is trading and you happens to fund your account with at 500$ while trading currently and as the market unstable what lot size do you think to be using to sustain a longer position while trading so that you wouldn't be that liquidated. Of course as we know, before opening a position you should know what lot size you should be using at the main time to keep your position for long time without getting drained. Is 0.01 ideal enough?

High risk 0.5
Medium risk 0.1
Low risk 0.01

Personally, if i had $500 in capital, i would use a maximum of 0.05 lots, and i would increase that amount as my equity grows from the profits earned if the position reaches the take profit level.