size/time risk

Discussion in 'Trading' started by illiquid, Mar 22, 2006.

  1. cnms2

    cnms2

    What are you trading? Pyramiding fits only strong trends trading, and means that subsequent buys should be successively smaller (like a pyramid).

    The size of your trade is determined by your account size, your expectancy, and your drawdown toleration. Once you have a consistently positive expectancy you can optimize your position size. Until then keep your size small.

    Most people recommend risking up to 1-2% per position, 5-6% per account. When you trade long your risk is defined as: number_of_shares * (cost_basis - stop_loss).
     
    #11     Mar 22, 2006
  2. ===============
    Maybe should try it ''when all ducks line up'';
    being sure as they say in Chicago , always have enough to come back the next day.

    Also most of my trades are trends;
    the times i do countertrnds, still trade those smaller.

    :cool:
    And consider like mourning is somewhat better than afternoon for me;
    intraday chart trading.
    Swing/position, afternoon entry is about the same.
    :cool:
     
    #12     Mar 22, 2006