What in your view is the more favorable method when utilizing profits in an account. Do u increase the size of your positions/contracts or do you diversify your portfolio among many multiple contracts/positions across different assets ?
What in your view is the more favorable method when utilizing profits in an account. Do u increase the size of your positions/contracts or do you diversify your portfolio among many multiple contracts/positions across different assets ?
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This question cover the real essence (or holy grail) of trading, money managment.
In my opinion, position sizing and a good risk/reward ratio of at least 3 prevails over diversification.
Think for a moment, if you trade a r/w ratio of 3 and win for the 50% of time you will become rich