DislikedI sure hope so!Ignored
Stop Loss vs. Hidden Stop Loss 26 replies
Stop Loss and Trailing Stop 0 replies
DislikedI am a day trader, My max risk per trade is 1% max risk for a day is 3% I do good if I quit for the day when I reach (-3)%. Most of the time my greedy monkey will not let me quit and I have end up losing more than 10% and takes more days to recover the loss, Now when I have quit the day with (-3)% most of the times following day is a good day I have even covered the previous day loss and made a small profit.
[color=black][font=Verdana]My problem is I have to keep my self reminding to quit if I reach (-3)%...Ignored
DislikedWhat exactly people mean when they say MM?
Is it the guide to setting lot size, or SL level?
For example, 2% - is it the 2% of capital I use on each trade (lot size that equals to 2% of assets), OR is it the loss due to SL (2% of assets lost if I get stopped out on each trade) ?Ignored
DislikedThere are probably already a million threads like this, so im sorry for recreating but i thought it would be better because it would answer my questions more specifically.
My question is how much of your trading capital do you risk per trade I have read a few books and most of them say 1%-2%, 2% being on the aggressive side?
Also if you get stopped out and then the market reverses, where do you re-enter, would it be at the same price as your first trade? The next question might depend on what kind of strategy you have but how many times...Ignored
Dislikedaccounting profit/loss for a set of certain number of trades (10, 50, 100 trades, etc) and not in terms of days (or any other time-period).Ignored
DislikedWould it be possible to just use a 1:2 risk reward ratio and put on a trade in the direction of the trend and expect to win overall. Not using any other indicators?
You win 2 a few times and you lose 1 a few times but you've traded with the trend so you have a better chance of winning more often .... so with that 1:2 ratio you should win at the end of the day? Is it that simple? has anyone tried that?Ignored
DislikedHi King Surfer
What does this mean?
DislikedIt makes absoultely no sense to risk 1% on one trade and x% on another.
Let's say you are confident that your next trade will end up positive (which is a very noobish thing to do) and you risk 3% and you get stopped out. Now you're pissed because the market didn't do what you expected. With your next trade you risk only 1% because you're afraid of losing now. It turns out to be a huge winner. To bad you fiddled with your risk settings because you could have covered your previous loss if you only kept your risk steady.
How much you should risk...Ignored
DislikedI personally risk 0.2% of my account equity per trade. With a maximum of 5 trades open at any one time, I never have more than 1% of my account at risk. The more capital I have to trade with, the less I need to make in order to live a good life. When I started trading I risked 1% per trade (only a maximum of 2 open trades at a time...so 2% total risk) in order to make the returns worthwhile for me. As my account has grown, I can reduce my risk substantially, and still make more as a dollar amount each month.
My strategy is very much based on reacting...Ignored
Disliked[color=black][font=Verdana]I would like to say limiting 1% to 2% per trade risk is very important to reach that wealthy 5% traders club they would have taken there time to get where they are now. Now letís see a regular person when I lose 1% or 2% I donít feel bad losing because you know you could make this money back following trades or days. Some days I lose 10% I shouldnít be losing that much for a day but my greedy monkey coursed that for the day now following day I have 99% of chance losing than winning because of the fear I build up thinking...Ignored