Discussion in 'Strategy Development' started by ginux, Feb 23, 2006.
What is the max amount of loss you are risking for each trade % wise?
Do you mean 3% of your ENTIRE capital
3% of the amount you used up for that particular trade?
Like to start with a small %;
total risk to capital.
Aim @ not exceeding that amount;
scale in usually & market conditions are also a factor
Easier to get back in if desired ,than huge ''holding thru pain''
Apparently to tight. I was reviewing my trades for 2006 so far last night. And was shocked to find that had I let almost every one of my losers have a little more wiggle room they would have worked out. Instead over half of my gains were eroded do to commissions and stopping out early. I`m up 1% on the year and I should be up about 5%.
Even after years of trading we can learn something from a trade log.
so how tight is it?
i'm current risking 3% of the trade amount (not total capital) incl. commissions and slippage, and i find myself getting tapped out A LOT. now i'm thinking of increasing it to 5%.
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