How much would you risk on a GOOD trade?

Discussion in 'Risk Management' started by macintash, Oct 30, 2013.

  1. And again, there is no such thing as a "good" trade. In fact, some of my best trades looked extremely bad right from the start.

    That said, a trader should never risk more than 2 to 5% of his capital on any given trade, no matter how "good" it appears to be.

    Trading is a marathon, not a sprint.
     
    #21     Oct 31, 2013
  2. Got the answer. Only 2% to 5% no matter how "good" the trade looks.
    Do others agree?
     
    #22     Oct 31, 2013
  3. You're awfully picky!

     
    #23     Oct 31, 2013
  4. Jack, do you use a flux capacitor as an indicator in your trade setups ?
     
    #24     Oct 31, 2013
  5. Please keep thread clean. This in NOT a thread about jack hershy.
    If you have an opinion re risk size for a good trade please post your opinion.
     
    #25     Oct 31, 2013

  6. So I get yelled at when Jack is telling people to use 94% of their account on one trade. Hmmmmm
     
    #26     Oct 31, 2013
  7. Lol 94% of the account with 6% for a margin buffer. That is amazing.

    Jack have you ever thought about a career in stand up. Thanks for breaking the monotony of this trading day.
     
    #27     Oct 31, 2013
  8. Why not 100%? Seems to me once I took a 94% hit on a single trade my frame of mind would make it unlikely I could fight my wayback using the remaing 6%.
     
    #28     Oct 31, 2013
  9. How else could you have the confidence to risk 94% on a single trade? Only the flux capacitor model HC (high confidence) can make those trades possible.

     
    #29     Oct 31, 2013
  10. tiddlywinks

    tiddlywinks

    You people are simpletons.

    I don't use JH methods and JH does not need me to run interference.

    It doesn't matter if he's eccentric, or if he's the worlds first quadrillionaire or if he barely eeks out less than minimum wage. The guy has half a century of hands on involvement in the markets. If you spent a few minutes attempting to decipher and understand some of his posts you might find some value for yourselves. Perhaps even something that meshes with or enhances your trading.

    And for the record, he said his "policy is to use 94% of capital." No mention whatsoever of how many active trades.
     
    #30     Oct 31, 2013