Position sizing

Discussion in 'Trading' started by Trish, Aug 25, 2006.

What is your position on investment entry?

  1. My initial investment on every trade is the same amount.

    16 vote(s)
    28.6%
  2. My initial investment to enter a trade is always different.

    23 vote(s)
    41.1%
  3. My initial investment is the same and so is the $ position size increase.

    7 vote(s)
    12.5%
  4. My initial investment is the same but the $ position size increaseis different.

    10 vote(s)
    17.9%
  1. Buy1Sell2

    Buy1Sell2

    For the most part, excellent points. Never put yourself in a position to knock yourself out of the game. Those that do are fueling my pool , hot tub and Captain Morgan habits.
     
    #31     Aug 26, 2006
  2. that's why i was referrin' exclusively to particular trends. u obviously wont be able to liquidate exactly at every single top but u'll be able to acccumulate more or less at the exact bottom if the shit bounces regularly at the trend line. these kinda setups appear often on stocks gappin' for whatever reason. recent examples would be xmsr and on friday fnl. it's a particular pattern that tells the tale... u have to see an unusually straight trend line the marks those higher lows.
     
    #32     Aug 26, 2006
  3. Thank you for your kind words.

    I have spent plenty of time studying money management, thank you for your concern.

    Actually, no assumption at all about eventually losing. I merely stated a statistical fact, that trading futures overall is a loser's game. Otherwise 90%+ wouldn't lose would they? I didn't say I expected to lose. It seems you're pretty quick to assume stuff.

    It's interesting by stating a fact, that trading futures is a net losers game that you assume all sorts of things about my trading and "my issues".

    Whatever my mentality, to me no method of money management can make you money unless your system first has a positive expectancy.

    As for scaling, IMHO the advantages/disadvantages of it depends on the characteristics of any individual system.

    Feel free to continue the personal attacks and erroneous assumptions if you so wish.
     
    #33     Aug 26, 2006
  4. 0.02%?

    Nope, unnecesarily conversavtive.

    A trader with a good system can intra-day trade with a stop loss representing 2% - 5% of total performance bond and still do very well.

    My thoughts.

    Best,

    JJ
     
    #34     Aug 26, 2006
  5. Somebody's been doing a helluva lot of work.
     
    #35     Aug 26, 2006
  6. Just quoted your own words...take it FWIW. You are operating under some false assumptions, and they will not serve you well in becoming an Elite trader. (ok...that was a little condescending, but my experience with most on ET, is that most are hacks and wanna be's, so I operate from the presupposition)

    If you can't take a little constructive criticism then don't open the door and refer to someone else's post as "silly!" I do, what others dream about, and that's trade for a living. I trade both discretionary and mechanical systems. I currently trade 5 different systems, so when it comes to trading, systems and money management, I am one of the few who do(and consider myself an expert), versus the many who dream.
     
    #36     Aug 26, 2006
  7. wwx

    wwx

    mschey:

    Can you possibly illustrate these approaches with an example or two?

    Thanks.
     
    #37     Aug 27, 2006
  8. Quoting my words? I think not. Please read my last post careful and the one prior to that.

    I said trading futures is a losing game overall. That means the majority of people lose. That is a fact.

    You then made various assumptions based on what you interpreted me as saying, not what I actually said. Did I say I expected to lose? No. You assumed that.

    So, do tell me what false assumptions I am operating under?

    So, now more assumptions. You assume everyone on ET is a hack unless proven otherwise? How nice. Actually, there are many excellent traders here, although they may be in the minority.

    Fortunately, I have no desire to become an "elite" trader, whatever that may be (it sounds rather egocentric to me). My only expectation is to try and trade as well as I can.

    I also don't go around making assumptions about things I don't know about without any evidence. But, that is just me.
     
    #38     Aug 27, 2006
  9. Whoa whoa whoa whoa!

    I must have missed that one in the first reading.

    Never do that! :eek:

    Take your losses, cut the trade, and come back to fight another day.

    Yes, because the mini's tend to trade in a back-and-forth fashion 70% percent of the time, you can get your coin back up using this technique ...

    But I saw a guy do that on one of these threads (after I told him it was good until it wasn't, a la Black Swan, so therefore it was being irresponsible to advise other people to do it). He got pissed and kept doing it, as it just so happens, the market closed on the lows that day, ... after a substantial down move.

    Goodnight,

    JJ
     
    #39     Aug 27, 2006
  10. Does he buy the double double?


     
    #40     Aug 27, 2006