No I did not say that. I wasn't going into personal savings suggestions. I was speaking about a retail trader, yes.
Well in this case, how much money you deposit is purely a function of how much money you have and how much risk you're willing to take. There is nothing to be gained by depositing more than what you're willing to risk. Why deposit 100% if you're only utilizing 5%?
Nothing changes. Its the same risk; I may lose it. So, why deposit everything I've got. Why not simply deposit what I'm willing to lose? I am choosing to make my deposits a function of risk tolerance and overall savings. Therefore, as my savings increase, my deposits will increase. For the time being, those deposits actually come from employment income. In 2013, my Questrade account has had only one deposit and 18 round trades netting about 70%. I'm also choosing not to compound within the trading account. Profits are quickly transferred out into savings. For now were talking dollars and cents, but this should add up quickly over a few years.
It's best practice to sweep profits and trading fixed lots if you're risking more than you're earning. Not ridiculing anybody here, but everyone on this thread is running a risk/reward >1. I include myself in that calc as my preferred trades are in DNT exotics.
Cash rate announcement tonight. With all the less than awesome news there's a chance it might be lowered. Either way, expect a snap.