Increasenow: look at it this way.....you mentioned possibly going 4 contracts on setups you are "sure" of. Let's say you take a 2pt stop loss on that trade. That is $400 plus commish so call it $423. on a $3,800 account you just lost over 10% of your account in 1 trade ?!?!?! What happens when you lose the inevitable 3-4 trades in a row? You are down approx 40%. this is all ASSUMING you know how to trade. You will still have a string of losers and be wiped out. It just doesn't make any sense to do this. Good luck.
This is one of the first tests of an inexperienced trader's discipline. The thuth is that most new traders should be much more concerned with limiting losses (and staying in the game), and less concerned (or excited) about potential profits. $300 margins may look appealing to inexperienced traders, but they are the very traders who should probably stay away from that kind of leverage. Perhaps there are expert traders out there who can use that kind of leverage, but for most mortals, and certainly to newbies, it's too much leverage. If you're inexperienced and want to trade and push the leverage, consider it a gamble and be prepared to part with your money.
Once again, increasenow ignores all other posts and focuses on the one that fits his viewpoint best. Can't say I am shocked
thanks for the thoughts...in the end...it totally comes to your ability to manage risk and your appetite for risk...thanks again for your replies...all is cool...I'm out... my motto is "No risk...No reward"...
agree. I'm done with this. I wrote out 2 posts in which I did not blast him but tried to give explanations, opinions, and advice.
risk is a relative term, if you dont know how to trade already, you will have to learn to establish risk parameters given the markets current conditions. This will get very expensive for you unless you go about it the right way, by going as small as possible. Not worrying about how many lots you can actually get with your current account size. You will learn in due time and look back on these types of threads and laugh at yourself. Assuming you end up making it, if not I doubt you'll ever read these threads again.