When I first learned about money management, I essentially learned two things:
1) limit your risk to at most 2% of your equity.
and
2) Plan your trade to gain atleast 200 or 300 per cent of what you're risking. If based on the technicals, that is not possible, then don't take the trade.
Then I read an extremely long thread about price action, and I've even started to use it myself. The problem is, when I see a potential trade to take with price action, it is hardly ever 200 or 300 per cent of my risk. Usually it's a sure fire way to gain a hand full of pips, from my experience.
Question: Am I not taking the right trades? Should I be looking for larger swings? Does this MM scheme need to be modified? HuhhH?
Some guidence please.
Thanks in advance.
1) limit your risk to at most 2% of your equity.
and
2) Plan your trade to gain atleast 200 or 300 per cent of what you're risking. If based on the technicals, that is not possible, then don't take the trade.
Then I read an extremely long thread about price action, and I've even started to use it myself. The problem is, when I see a potential trade to take with price action, it is hardly ever 200 or 300 per cent of my risk. Usually it's a sure fire way to gain a hand full of pips, from my experience.
Question: Am I not taking the right trades? Should I be looking for larger swings? Does this MM scheme need to be modified? HuhhH?
Some guidence please.
Thanks in advance.