Money4Nothing,
Thank you for your post.
I am glad you pointed out what you did. It cleares up one very important factor: that your trading confidence should be based on sound money/risk management (and not how big a bet you can put on without creaming your pants).
As long as you adhere to your parameters (whatever yours or anyone else's may be), it does psychologically not matter what your 'pip-value' represent's in real cash.
If you know the in's and out's of the method (e.g. in our test-account the risk limit, the position size, etc.), then why would it cause havoc in the head? If the account was $1million (instead of $10K), the pip-value would be $500 and the loss-limit per trade would be $20.000 -- with the same trading rules, expectation as well as frequency of opportunity, the outcome of the account on a daily, weekly and monthly basis would not change.
So, there would be no need to get stressed about putting on a trade with a pip-value of increased size, since logically, the trader's risk is exactly the same. If one starts getting scared to put bigger money on the table for no apparent reason, then trading is the wrong profession.
H. Rearden
Thank you for your post.
I am glad you pointed out what you did. It cleares up one very important factor: that your trading confidence should be based on sound money/risk management (and not how big a bet you can put on without creaming your pants).
As long as you adhere to your parameters (whatever yours or anyone else's may be), it does psychologically not matter what your 'pip-value' represent's in real cash.
If you know the in's and out's of the method (e.g. in our test-account the risk limit, the position size, etc.), then why would it cause havoc in the head? If the account was $1million (instead of $10K), the pip-value would be $500 and the loss-limit per trade would be $20.000 -- with the same trading rules, expectation as well as frequency of opportunity, the outcome of the account on a daily, weekly and monthly basis would not change.
So, there would be no need to get stressed about putting on a trade with a pip-value of increased size, since logically, the trader's risk is exactly the same. If one starts getting scared to put bigger money on the table for no apparent reason, then trading is the wrong profession.
H. Rearden