Wanted to bring up the topic of money management and risk/reward. Through my reading proper moner management should consist of risking only 2% per trade. My problem is the following upon doing this I could end up at the end of the week negative as far as percentage gained but positive in the amount of pips. ( I do not set a profit target but rather follow my trade with a trailing stoploss determined by the market).Example:
trade #1: 30pips risked, lost trade, lost 2%
trade #2: 30pips risked, lost trade, lost 2%
trade #3: 30pips risked, lost trade, lost 2%
trade #4: 100pips risked, won trade 100 pips, gained 2%
trade #5: 50 pips risked, won trade 100 pips, gained 4%
results: 0 percentage gain for the week , but if count pips 60 pips positive.
My question is does everyone just live with this or should I just set the pips out to be a set dollar amount even if it does interfere with the fact that we are only trying to risk 2% per trade. Feel free to reply and share any of your money mangement techniques and critique mine.
trade #1: 30pips risked, lost trade, lost 2%
trade #2: 30pips risked, lost trade, lost 2%
trade #3: 30pips risked, lost trade, lost 2%
trade #4: 100pips risked, won trade 100 pips, gained 2%
trade #5: 50 pips risked, won trade 100 pips, gained 4%
results: 0 percentage gain for the week , but if count pips 60 pips positive.
My question is does everyone just live with this or should I just set the pips out to be a set dollar amount even if it does interfere with the fact that we are only trying to risk 2% per trade. Feel free to reply and share any of your money mangement techniques and critique mine.