A question for the seasoned trader

Is there ever a time when you take a "gamble" (yes I said gamble) and break the 1 - 3% risk rule?

I used to. But it always caught up to me and bit me hard. I have not broken my 2% 10% over all rule ever since and that has been a big plus for me.

I do not know how seasoned I am. I have been trading since 1988, but FOREX for only 3 plus years.

Sometimes I feel like gambling, but I usually save it for the craps table. LOL

Scott

So in essence, 10% risk is your max risk/gambling rule, correct?

Yes, in all of my trades combined I do not risk more than 10%

Hell yeah. (But don't tell anyone I said that)

I knew it!

To nag you further....so would you risk 10% on one trade, just as long as you had no other open postions (trades?) How do you feel about this?

Well, risk is so relative to say the least. Lets face it, on a $1000 account and you open with a $1 mini lot with no stops....what is your MM risk?

Basically 100%.

Your lot position Vs. your stop size is the true risk %....but I'm not naive and realize that MOST traders hate stops and fail to apply them.

You have brokers that thrive on high volume turn around of clients....they may get 1000 margin calls a day, but know full well that they will get at least 2000 new account deposits.

(back to the subject)

The most I have "comfortably" placed on a single trade is five lots. But I also used a smaller than normal stop to compensate.

Strong movements are strong movements. Anyone who claims that they haven't taken advantage of that is either the most discplined person in the World....or a liar.

I don't do any specific math to determine % whatsoever. I know my account balance and I know how many lots I feel comfortable with at any given time. If the butterflys show up...I've taken too much risk.

No No No,,, That would leave me nothing for any future opportunity. I only risk 2% max in any one trade. I will only risk 10% in all trades combined.
I have always based my risk on the amount of my stop loss in relation to my position size.

[quote=MuddBuddha.

Strong movements are strong movements. Anyone who claims that they haven't taken advantage of that is either the most discplined person in the World....or a liar.

.[/QUOTE]

Hi Mudd, Well I must admit I have taken large positions in the past and more often than not the sure thing came back to bite me in the butt. So, I am doing my best to be disciplined. lol I can be taught. Scott

.... no ...... can't put it any simpler.