For the first two moments, I got radically different results. S1 = 0.0575 ; S2 = 0.043045 ; k1 == s1/s2 = 1.33581136 If we use the alternative mean/variance form, the ratio is even bigger: k1 ≈ s1/(s2 - s1^2) = 1.44695 I don't see how you got 50%.
Sorry for a noob question. But can somebody point me in the right direction of portfolio allocation for my risk per trade. Is there some software, spreadsheet or book that can help me figure this out? I am fully invested but don't know how to weight my holdings. Thanks
Maybe different trader they have own risk management in trades, I am ever reading some suggestion from expert trader which already have long years experience is risk management betetr low risk 2% in good risk management already, but most trader might they have desred to making huge profit and trade with high risk taker
Yes - the second half of Van Tharp's beginners' book, Trade Your Way to Financial Freedom, will be very helpful to you. (If you look around online, you can probably find a free PDF copy of it, to download).
Seems very interested ebook for learning, from the title it very attract many people to reading book, and might it will giving motivation for trader beginner learning forex trading tro get financial freedom, who not want to get financial freedom I thik all people they want
I think the risk per trade should not be more than 1 - 2 % of the capital, it is good to have a right approach for managing associated risks in order to earn consistent money in long run.
Have you put 15% of your cash in, or is this the amount at risk? If the former, how much do you actually have at risk if the trade goes wrong? To be clear, suppose I had $10,000. I could use 15%, or $1,500 to buy GOOG. But I put a stop loss at 20% of the current price. So all I really have at risk is $1,500 * 20% = $750 or 15% * 20% = 3% of my portfolio (in reality it's probably more than that as prices gap overnight and jump intraday so I might not get filled exactly at my stop). GAT