Dislikedgood morning jaquemate,
thanks for your daily interpretation. in that post of yours, you just mentioned about the subject I've been thinking for a while: pips and money management. you send your results nearly real-time and posted your weekly results a couple of pages back, but risking part of this method is still vague for me. I am not talking about pips or dollars because these are relative values, what is absolute is the % you risk each trade. you can make 2000 pips every day or every week, but if this just makes 2% of your account then it...Ignored
MM for me is not how for most traders.
A Habitual formula is: If I have 10000$ and I risk 2% at every trade position sizing is….
I respect it and it works for millions traders, sure. I don’t doubt.
Its generally accept. There is a lot of books about MM……. But my question is: Is it the only way? Why?. There is millions of systems to trade money and only 1 MM method with multiples variables?.
Do you think that volatility market respect you risk percentage?. All see it a lot of times. You put a stop order or simply mental stop fixed and price touch it and out. 1,2,3,4….. times.
When Im trading i think at context of actual moment and risk agree it. I wrong, ok. No problem. It is my responsibility. My money.
But it is a difficult concept to understand. I know it. People needs to know how money could be loss before enter a trade. Its gives people security. People needs to know that all its controlated. But it could be a false security. It’s a security loss at most cases.
Its obvious that you need a start amount of money to start trading. Minimum size is microlot. I you trade 14 microlots or 1.4 minilots you know how many money you need to start. Add spreads cost, margin, etc. Too its obvious that if you are losing an important part of your account you must stop trade, but for me could be 30% and for you could be 50%.
I can fix a percentage limit for security. Don’t risk more that an amount for trade. But this amount its an aproximation. I can limit loss inside a level but my thought is that risk must be adapted to market context. For me this is one of reason that most traders fails. But this is only my personal vision.
I don’t know if I explain it correctly.
It isn’t a critic of generally MM methods. No. Its only my vision and application of it.
Every trader must find his own MM way to be comfortable with it.
I understand that most people can´t understand I saying. I accept. I don’t teach no body.
I respect all ways of trading. All ways. There is no one way of trading. There is no one way to make money and there is no one way to MM. At least for me.
Regards.
That which you give to others, life will return it in spades