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How Much Do You Risk Per Trade?

  • #61
  • Jun 23, 2009 3:21pm Jun 23, 2009 3:21pm
Quoting markmm
How then can your account go into negative, your positions will be liquidated before your account is wiped, by the margin call. Unless there is a massive order that clears the complete orderboard or a liquidity vacuum.
If you are a very very good trader with track record and dealing with bank you may get a credit line, several hundred time your net capital,the bank just get to trust you at a certain time (not only you need to be a high net individual but you also need to be one of the best skilled trader in the word). blame the printing press.
"Simplicity is the ultimate sophistication" leonardo da vinci
  • #62
  • Edited 11:30pm Jun 23, 2009 11:17pm | Edited 11:30pm
Quoting mikkom
0.5-3% depending on strategy and some other elements.
For a 3% trade, do u scale up to 3% or 3% per trade at one go ?
The future depends on what we do in the present.
  • #63
  • Jun 23, 2009 11:33pm Jun 23, 2009 11:33pm
Quoting vulture
If you are a very very good trader with track record and dealing with bank you may get a credit line, several hundred time your net capital,the bank just get to trust you at a certain time (not only you need to be a high net individual but you also need to be one of the best skilled trader in the word). blame the printing press.
In interbank no one will give you more than 200:1 leverage and that also if you can move some mio/click. Till some millions per trade forget about more than 100:1 leverage, no one will offer you more than that. And if your equity raises even higher do keep in mind that leverage will also reduce with it. As a retail trader you can not move 10 billion with 1 billion account i.e. 10:1 leverage. If you are working as a trader for a bank than they will provide you credit but then it is not retail trading and banks have other forms of collateral securities in exchange with each other.
The only way to get smarter is by playing a smarter opponent.
  • #64
  • Jun 24, 2009 3:08am Jun 24, 2009 3:08am
I still don't think going negative is going to happen , if it did, good luck to the broker trying to get the negative balance from me.
Economists have forecast 9 out of the last 5 recessions
  • #65
  • Jun 25, 2009 4:34am Jun 25, 2009 4:34am
Quoting mikkom
No it doesn't, accounts can go negative so it's not different in any way to using stops.

If you don't believe this, read your broker contract - ever wondered why they always ask your net worth and other seemingly irrelevant questions? [note that I'm not claiming it's easy to get negative, in fact it's very hard but it's possible]
Well, to be honest they ask about it because this is what NFA wants them to know. I am familiar with FCM business so I know that. There can be situations when your net worth is very small and you try to open account with deposit almost as big as net worth. Fair broker will not open account for you in this case.

And yes- account can go negative but only in marginal scale. Most brokers will "zero out" such balance and they take it as their own risk. Because it is not fault of trader if their system did not manage to liquidate positions before deposit went below 0. I have seen tens of situations like this and always brokers were making balance go "zero". This is the only way client can go back to trading. And negative balance was never more than 50$. Bigger traders do not risk that much so this number only reflects all those "mini lot" traders who open too large positions.
  • #66
  • May 29, 2011 3:03pm May 29, 2011 3:03pm
I trade with 10x my $NAV with a 7 pip SL Inc spread (oanda) so that's 0.7% with 15pip target with BE at 5 pips and trailing stop at 10 trailing by 5. I have a profit factor of 1.84 and so far up 7%, but haven't been trading much as I have GCSE's etc. At the minute.
  • #67
  • Jun 11, 2011 10:40pm Jun 11, 2011 10:40pm
I risk no more than 10% per trade.

My trading system lets me trade a maximum of 12 trades in a year. BTW, I am only trading EUR/USD.

Profit target is 1000 pips per trade and one trade lasted 6 months. In 2009, I have only 3 trades. SL varies in pips, but always max of 10% of my account balance.

In essence, 10% per trade is manageable as the trades are infrequent.
Fear prevent possibilities, and so does Greed
  • #68
  • Jun 12, 2011 12:38am Jun 12, 2011 12:38am
Quoting xtrader101
I risk no more than 10% per trade.

My trading system lets me trade a maximum of 12 trades in a year. BTW, I am only trading EUR/USD.

Profit target is 1000 pips per trade and one trade lasted 6 months. In 2009, I have only 3 trades. SL varies in pips, but always max of 10% of my account balance.

In essence, 10% per trade is manageable as the trades are infrequent.
What's your r/r?

If your tp is 1,000 pips what would be your sl in number of pips?
The Thief of Wall Street
  • #69
  • Jun 12, 2011 4:10am Jun 12, 2011 4:10am
Quoting Chicky
What's your r/r?

If your tp is 1,000 pips what would be your sl in number of pips?

I'd appreciate you letting us know this as well

Regards

Ken
  • #70
  • Jun 12, 2011 9:40am Jun 12, 2011 9:40am
Quoting Chicky
What's your r/r?

If your tp is 1,000 pips what would be your sl in number of pips?
My stop loss ranges from 43 to 318 pips, but on average, it is around 190 pips.

I reduce my risk to 2.5% after a 1000 run and increase it gradually to 5% for the next signal. The third signal after the 1000 pip run, i increase it back to 10%. Back to back 1000 pips run only happened once, so the next signal, I only risk 2.5% and TP to 400 pips.

For 2011, there were three trades so far, entered in January and close last May (1000 pips). Then two losing trade totaled 462 pips, but at a lower risk (2.5% and 5%).
Fear prevent possibilities, and so does Greed
  • #71
  • Jun 12, 2011 9:45pm Jun 12, 2011 9:45pm
Quoting xtrader101
My stop loss ranges from 43 to 318 pips, but on average, it is around 190 pips.

I reduce my risk to 2.5% after a 1000 run and increase it gradually to 5% for the next signal. The third signal after the 1000 pip run, i increase it back to 10%. Back to back 1000 pips run only happened once, so the next signal, I only risk 2.5% and TP to 400 pips.

For 2011, there were three trades so far, entered in January and close last May (1000 pips). Then two losing trade totaled 462 pips, but at a lower risk (2.5% and 5%).
Thanks.

Looks like a good system, reminds me of Old Turkey.
The Thief of Wall Street
  • #72
  • Jun 13, 2011 12:08pm Jun 13, 2011 12:08pm
I risk over 10 % because I like the emotions that the big risk bring to me.
  • #73
  • Jun 14, 2011 9:06pm Jun 14, 2011 9:06pm
I risk about 0.2-0.5% per trade. I used to risk a lot more, but had some bad experiences due to poor money management. (I have only been trading for about a year- so I still consider myself a newbie with lots to learn)

0.2-0.5% has been working out good for me so far
  • #74
  • Jun 15, 2011 2:56pm Jun 15, 2011 2:56pm
I risk a lot more like 50% sometimes. when I am sure where trend is going
  • #75
  • Jun 15, 2011 4:01pm Jun 15, 2011 4:01pm
So there are a lot of ways to manage your risk, but really it depends on the trader. There's no right or wrong amount of risk, it just depends on your performance and whether it's an appropriate amount relative to that. I'll be posting a video in the coming days about this just to share a bit more about the topic.
  • #76
  • Jun 20, 2011 11:27am Jun 20, 2011 11:27am
I'm sticking with 2% risk. Many guides and strategies suggest it to be max for the beginners. When entering retracements on big gbp, aud and usd news spikes I risk 5%, close half of position quite soon (1-5 min) and move to breakeven..then trail the stop and enjoy the risk-free ride.
  • #77
  • Jun 22, 2011 5:13am Jun 22, 2011 5:13am
My money management is not constant. I have 3 categories of riks: 1% (for risk trades - when market is really volatile), 2% (for average trade) and 10 - 20 % for perfect trades (my trading system shows me once per month this opportunity)
  • #78
  • Jun 23, 2011 1:25am Jun 23, 2011 1:25am
Never risk more than 2% of your money in a single position.
  • #79
  • Jun 23, 2011 12:21pm Jun 23, 2011 12:21pm
I currently risk between 1 and very occasionally 5 percent per trade dependent on the stoploss size. There are so many variables though, like size of trading capital etc.

I cannot imagine I would be as comfortable risking 1% on a million pound account though, it will be an interesting and very nice problem to have in a few years time hopefully.
  • #80
  • Jun 23, 2011 12:46pm Jun 23, 2011 12:46pm
http://www.forexfactory.com/showthread.php?t=300402

i created poll ;-)
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