Following Neke's posting about HC, MC, and LC trades, I've been thinking of doing some high conviction trades myself. If you're a pure systems trader, any given trade is the same as any other trade. Therefore, you should risk the same for any given trade. However, if you're a discretionary trader, you may perceive opportunities that have the rare percentage of high probability combined with being very good reward/risk. There is great temptation to bet aggressively, to take a substantial risk as % of investable funds. If you're right, it can be fortune making, but if you're wrong, it can also be somewhat devastating.