How to size up capital appropriately?

Discussion in 'Risk Management' started by Jason11111111, Sep 4, 2019.

  1. tomorton

    tomorton


    Maybe that is also why the bulk of the fund industry's results are so close together? - the only way one of them could have made extraordinary gains would have been through taking extraordinary risks.
     
    #11     Sep 5, 2019
  2. Fonz

    Fonz

    Losing 10% of a $1.000 account is no big deal, but losing 1M of a 10M account is a very big deal.
    This is why pros don't take high risks.
     
    #12     Sep 5, 2019
    comagnum likes this.
  3. tomorton

    tomorton


    I would never let my trading account grow to 10M.

    But if I had 10M to trade with and lost 10% of it I'd still be very happy. 'Course, if its 1M of someone else's money, then that's a big deal.
     
    #13     Sep 5, 2019
  4. CannonTrading_Ilan

    CannonTrading_Ilan Sponsor

    great topic and pointers by many which I read. As a broker who observed thousands of traders over the years, 95% of them are retail, I can say that the ones who DELEVERAGE the already highly leveraged futures trading, are the ones who have much higher success rate.
    On the professional side, most try to use close to zero delta strategies of diff. kinds and take very small risks % wise.
     
    #14     Sep 6, 2019