Hello boys and girls. Let's debate something... I know all the books and all the teachers claim that you should risk less than what you earn per trade and that if you risk $2 to get $1 is a losing proposition... But is it so? What if this is actually an edge. Having tons of winners and only a few losers exactly because of this. After all, you still risk a low % of the account... What do you say ?
There are certain high prob setups I use where I risk slightly more than I try to make but I have tested extensively and then simed it for 6 months before I commited actual cash and then even though I had a lot of faith my first 2 trades were losers. That turned around but what I am saying if you do take these setups you need to test extensively then have faith
thanks bogan. i also thought that you need to have faith and really risk a small amount, even if that means gaining an even smaller amount... however, what i am thinking is like... risk more, but let a winner run even more... what would it be if one would combine regular stops with time stops? i think that would limit the risk even more, even in a workframe like that, where you initially risk more than what you aim for...
I risk more than I make on every setup, at least initially. I now have about an 83% reliability so it works out fine.