Thank you Nomask.
Rather than extending this with different mathematical money management calculations I can say from experience :
a) I tried ultra-shortterm trading with high leverage. My thought : if I make 20 pips ( 1Pip worth 20 USD = 2 lots ) daily, that would be 400 USD. Not bad. Result : huge stress.
b) then the idea : increase my risk to reward ratio and reduce leverage. I can then trade with less lots, but the pips gained are more than 20 pips per trade. I can place larger stops if I want to, or don`t experience so much stress even if I get stopped out multiple times. This works !
Hope anyone can make sense out of that....
_____________
michael
Rather than extending this with different mathematical money management calculations I can say from experience :
a) I tried ultra-shortterm trading with high leverage. My thought : if I make 20 pips ( 1Pip worth 20 USD = 2 lots ) daily, that would be 400 USD. Not bad. Result : huge stress.
b) then the idea : increase my risk to reward ratio and reduce leverage. I can then trade with less lots, but the pips gained are more than 20 pips per trade. I can place larger stops if I want to, or don`t experience so much stress even if I get stopped out multiple times. This works !
Hope anyone can make sense out of that....
_____________
michael
Be like water.