I don't want to drag this on much longer, but the point of my post was not to present every factor that goes into risk limits. Rather it was to highlight that putting your whole account into a trade is not the same as "risking" your whole account. I just wanted to ensure that he was aware of this since I do know people who only "trade" with only 1-2% of their account at a time in an attempt to follow the "1-2% risk limit" advice. And you just can't get anywhere fast if you do that.
Thank you . Actually, my middle school was 20 years ago in Egypt.. ) Now i am clear.. Thank you again
I use the Kelly Kriterion as well. Which forces me to expose only 20-30% of my positions in stocks. I don't have much of a win ratio, just a good management of cash, with a willingness to close losing trades.