Below I pulled up an old quote from Stephan31 about his style of trading and am curious about some things. Hopefully, he will be able to answer, but I'd like any opinions on this. He says, and I hear this often, that he doesn't risk more than 3% of the account equity on the initial entry. What exactly does this mean? Does that mean, a $10k account, you're initial position is $300, or do you set a stop loss at a $300 loss? In the latter (stop loss), it seems you are still susceptible to gaps or big moves beyond the 3% loss position. It was also stated that if the trade is working, two units are added (tripling the position). Just curious what the time frame is for deciding to double up? Certainly it depends on your trading time frame, but just curious about this...and the last part about adding one more unit at the end of successful trades. My trades are typically from day trades (not the initial plan, but sometimes what happens) to a few days. Thanks. ----------------------------------------------------- Original quote from several months ago: "someone asked me how i trade. i have been a member since 1999 and mostly lurk to fill up my rather boring swingtrading existence. but i can write a general response here after the markets. i swingtrade six market complexes--very deep and liquid ones--indexes (nq), interest rates (30 year bond), metals (silver), currencies (eurocurrency), energies (crude), and grains (beans)--and have the ability to trade within these complexes as well. typical holding time is several days to approximately 1.5-2 weeks. my win % for over 3,000 trades is approximately 52%. however in my opinion my 'edge' is in position sizing. typically i enter any trade with one unit and using basic elliot wave, technical patterns, and S/R I 'add' 2 units to WINNERS on the 2nd entry, then finally 1 unit on the LAST portion of the trade if it continues in my way. on one unit entries my cost of doing business is a stop-out loss but TYPICALLY a stop-reverse to go the other direction with one unit. my R/R is rather robust, but fairly typical--the last 100 trades were the following. crude--15 trades/5 losses/3.13:1 profit factor bonds--9 wins/10 losses/4.37:1 profit factor euro--9 wins/8 losses/2.72:1 profit factor silver--8 wins/10 losses/2.62:1 profit factor beans--9 wins/8 losses/1.44:1 profit factor emini nq--6 wins/8 losses/3.76:1 profit factor i never risk more than 3% of my account equity on 'initial' entry--the 100 trades do NOT include the two additional entries on trades that had follow through. i would never sell what i and my partner do--(i don't want the competition for fills on stop entries)--i freely admit i am the world's worst daytrader--so i gave up that ego play about 2 years ago. for me--it has helped tremendously to work closely with an older, nfa member on a close basis daily--to split the duties if you will--a team approach if you will. that is what i do and how i do it. this is my favorite trading forum to read about stuff though"