Tell me about your Uncle Point

Discussion in 'Trading' started by ElectricSavant, Jul 17, 2006.

The % of your current capital you will withstand to lose aka your Uncle Point

  1. <=1%

    6 vote(s)
  2. <=3%

    4 vote(s)
  3. <=5%

    4 vote(s)
  4. <=10%

    4 vote(s)
  5. <=15%

    1 vote(s)
  6. <=25%

    7 vote(s)
  7. <=30%

    3 vote(s)
  8. <=45%

    1 vote(s)
  9. <=50%

    0 vote(s)
  10. >50%

    18 vote(s)
  1. What is your Uncle Point?

    An Uncle Point is the point you exercise your discretion and you are out of the game.

    I know many of you use hard stops. But many also have Uncle Points, whether they be hard or mental.

    What is yours...what say ye...

    Mine is 15% of my current capital.

    Michael B.
  2. For those of you over 50% would you mind posting some commentary?


    I would be very interested in hearing from that 1 percenter...

    Michael B.
  3. I think this poll is confusing for some...

    I am talking about when you are out of the game....not individual trades...but cumulative...

    The Uncle Point may be used by longer term traders...or even scalpers...It would be the time you stop trading your system and take a break or start up another system...

    Michael B.
  4. Many of you use a percentage of capital you wish to risk on a trade by trade basis to decide your stops with. I believe this is incorrect. I believe the instruments volatility should be considered as the market has no idea what your condition is and your percentage would be better utilized then.

    Your Uncle point would be separate from this and you should be well enough capitalized to be in the game and trade the volatility you choose.

    Michael B.
  5. If you've got a ton of capital, and we're only talking about one trade - 1 percent can be a lot . . even too much.

    If we're talking about total assests in trade and your corresponding uncle point in that trade . . well that's different.

    What are we talking about exactly?
  6. Well... yield is on a percentage basis too...throw it in a CD then...oh and then there is labor...

  7. A loss of 15% of your total capital would cause you to walk away entirely from trading???

    It would take a much bigger drawdown before I decided I should not trade any more ever...

  8. late edits...reread...

  9. What is your Uncle Point?

    The latest loser's fad in MM. :D
  10. Thank you nononsense for you honest commentary...Yes I am a loser...but I am learning fast to be a bigger one..:)

    Send me your finest fads and gimmicks
    Mr. MarketSavant

    #10     Jul 17, 2006