I hear of money management in almost every post. I posted this as kind of a survey to determine how people determine proper money managment.
Say you have a 10k account and you want to risk 10%. 10% of $10000 is naturally $1000. My question is do the majority of traders......
A: Place a number of positions equal to $1000. So when you SL is hit your loss is actually greater than the risk percentage.
or
B: Take the risk amount, in this case $1000, divide by number of pips when stop loss is hit to determine the amount per position to trade, and place trades accordingly. That way if your SL is hit you lose only $1000.
I'm just curious as to how people determine their risk level.
Thanks
Jar
Say you have a 10k account and you want to risk 10%. 10% of $10000 is naturally $1000. My question is do the majority of traders......
A: Place a number of positions equal to $1000. So when you SL is hit your loss is actually greater than the risk percentage.
or
B: Take the risk amount, in this case $1000, divide by number of pips when stop loss is hit to determine the amount per position to trade, and place trades accordingly. That way if your SL is hit you lose only $1000.
I'm just curious as to how people determine their risk level.
Thanks
Jar