Stop loss = 8 x 10 = 80 + rt commission = 92 What percentage of capital you want to risk per trade? I assume 2% 92/.02 = 4600 per contract. Round this to 5K Thus, based on fixed risk percent you can afford to trade 20 contracts. Next you ought to look at the leverage. This is something else. It is subjective. IMO should not be more than 2x. Based on current prices, the value of the contract is about 29K With 20 contracts you have 20 x 29K / 100K = ~ 6 x leverage. To reduce this to 2 you need to trade 200/29 = ~ 7 contracts The smaller leverage factor protects you in the case of a disaster. Anyone I knew with leverage more than 3 x eventually got ruined. Best of luck and watch out for your leverage.
You should ask yourself the following: 1) How much money Im willing to risk per trade 2) How much negative trades in a row I may have - in a worst case scenario, not an optimistic one 3) then, at how many wrong trades of blowing up the account I am.. after that you do the math. In my opinion, at least 20-25 wrong trades in a row should be the minimum answer.
depending on how much your instrument is offering and how quickly you can disappear not being fooked :eek:
be sure to let everyone know how you get on:eek: this is one instance where i think i can predict the future fairly accurately you only ever have to make 2 choices when trading..you either trade correctly or incorrectly trading correctly is always the hardest choice to make..but always the best choice choose wisely! TO
i see the slithering snake is sneaking around the site..spitting out his venom as he meanders mindlessly in the desert of delinquents time to shed your skin..sneaky snake The Oracle