How "Pros" size their trades

Discussion in 'Risk Management' started by Yana, Mar 14, 2013.

  1. chimera

    chimera

    I think as a rrule of thumb anything mor than 2% risk even if you have insider info. and you ar asking for trouble long term.

    Chill out. stop trying to create huge gains and the Holy Grail. Many of these funds are crap and yet they are millionaires.
     
    #41     Jun 5, 2013
  2. chimera

    chimera

    yeah i have ben thinkng about this. say you had to buy $15m vvorth of a stock...hovv vvould you do that? Scale in or just place a buy stop order for 200,000+ shares?

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    Big commercials and institutions almost always scale their trade entries and exits.
     
    #42     Jun 5, 2013
  3. chimera

    chimera

    Call me petty but give me $2million and i'd be ecstatic with 10% gains tiny losses etc. Spend my time touring the world and passive end of day trading.

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    But if you got 500K or Millions
     
    #43     Jun 5, 2013
  4. chimera

    chimera

    or..you have the wisdom to not be tempted to do so...?

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    and when the big trade comes along you have the experience to break the rules, and hopefully live to tell the story.

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    doing that after you have spent so long building up your cash is pure greed. The number one reason for failure in trading is GREED i.m.h.o. it will always try to trick you.
     
    #44     Jun 5, 2013