In the past I have lost a huge sum by trading in everything. I did a lot of small transactions per day. Mostly I earned a 1.000 per day trading, but ........ Somethimes I had a bad position and I extended that position, and extended again. At the end I get wiped out because of the margin and made a great loss. So my fault was that my positions were to big to hold on. Then I stopped for quite a period. For some reasons I started op beginning april this year with 10.000. Nowadays I extend my position when I am in a winning position, and place a stoploss at breakeven. Winning is quite boring, according to the stress of getting wiped out when you are losing. I appears that this is a better strategy, because at the end of the month my capital is increased to 37.000. Now I am thinking is this only beginners luck? Take my profit and stop?
When you gamble profits you can make either bigger profits or leave with smaller profits. You never go broke taking profits. When your positions are draw down mentally you just want to close out near break even. The trade off is you are often taking little profits and have no capacity to absorb any significant loss.
That's a hell of an equity spike for one day. Just on the surface it seems like you may be taking on a little more risk than you should. But to each his own. What you want is consistency above all else (not perfection, of course), and then increase your risk. If you're comfortable with your consistency, then I say go for it ... go on! If not, then trade small 'til you get consistent, or bail. ... my .02.
Was better that anyone had advised met to stop, because my account was almost crashed when the market got down and I had to cut my position because of margin problems. But as I fighter I am I came back at the end of last week from the low of â¬3.000 to â¬44.000. Now is the question, go on as I have done and let my account grow to â¬500.000? or go on at a lower pace and have less stress. Go on will be accepting the risk that I come in the same rollercoaster.