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5% risk per trade?

  • #221
  • Aug 27, 2019 9:34am Aug 27, 2019 9:34am
Quoting shrips
{quote} you missed my point...even with good money management you can still lose!
That’s right; without proper trading knowledge there is value of tight money management plan!
  • #222
  • Aug 28, 2019 2:55am Aug 28, 2019 2:55am
5% is really dangerous and it become more fatal if you are a begginer
  • #223
  • Aug 29, 2019 7:13am Aug 29, 2019 7:13am
Quoting Felix.me
5% is really dangerous and it become more fatal if you are a begginer

focus in making winning trades at a very high percentage and money management will look after itself
  • #224
  • Aug 29, 2019 10:59am Aug 29, 2019 10:59am
Quoting shrips
{quote} focus in making winning trades at a very high percentage and money management will look after itself
But I think; traders need to focus on the consistency instead of any specific trade position! Besides; taking high risk reward ratio will be dangerous for sure!
  • #225
  • Sep 8, 2019 12:15am Sep 8, 2019 12:15am
Quoting Felix.me
5% is really dangerous and it become more fatal if you are a begginer
totally agree , 5% looks not big , but as a beginners its really massive risk ratio, beginners always should keep 1-2% risk when trading, otherwise at any time they can fall a great trouble.
  • #226
  • Oct 17, 2019 12:07pm Oct 17, 2019 12:07pm
I agree. 5% is just too much, especially for beginners.
  • #227
  • Oct 18, 2019 5:12am Oct 18, 2019 5:12am
not only beginners but i think its more risky for any kinds of traders, but experience traders can handle the risk when trading.
  • #228
  • Oct 18, 2019 10:57am Oct 18, 2019 10:57am
Quoting MarkFxAnde
not only beginners but i think its more risky for any kinds of traders, but experience traders can handle the risk when trading.
True. That is why I specified it applies especially for newbies.
  • #229
  • Oct 21, 2019 11:06pm Oct 21, 2019 11:06pm
Quoting mlawson71
{quote} True. That is why I specified it applies especially for newbies.
I'm even feel nervous when trading 5% with my demo account. It makes me sit and watch the trade go for hours.
  • #230
  • Oct 27, 2019 10:57am Oct 27, 2019 10:57am
Quoting Dendro
{quote} I'm even feel nervous when trading 5% with my demo account. It makes me sit and watch the trade go for hours.
Whatever; 5% is always dangerous to go with, be realistic & follow the rules of money management properly!
  • #231
  • Oct 30, 2019 5:36am Oct 30, 2019 5:36am
Yeah its not that good for beginners. But i would say it depends more on the type of trader you are, your experience and skills.
  • #232
  • Oct 30, 2019 11:37am Oct 30, 2019 11:37am
Quoting bunnyy
Yeah its not that good for beginners. But i would say it depends more on the type of trader you are, your experience and skills.
No doubt on it; but I see pro traders following the money management rules so tightly! As a result, they don’t lose a huge portion of their trading account!
  • #233
  • Nov 13, 2019 12:07am Nov 13, 2019 12:07am
money management is a great skill which can support to avoid unfortunate losses and risk, but to be experienced about MM is a long term process, so traders mostly lost interest after passing sometimes.
  • #234
  • Nov 14, 2019 6:09am Nov 14, 2019 6:09am
Quoting ZikriIrfan
{quote} No doubt on it; but I see pro traders following the money management rules so tightly! As a result, they don’t lose a huge portion of their trading account!
When you are experienced trader, the biggest difference between you and a rookie trader is how much you stick with your strategy and Money Management. People who are successful at trading sticks with their strategy no matter what. Usually it's better to start with small risks and use those small trades to get the experience and after some time, you can up your profits by trading with more money on the same risk level or by raising the risks you take.
  • #235
  • Dec 1, 2019 9:24am Dec 1, 2019 9:24am
Quoting Johny-af
{quote} When you are experienced trader, the biggest difference between you and a rookie trader is how much you stick with your strategy and Money Management. People who are successful at trading sticks with their strategy no matter what. Usually it's better to start with small risks and use those small trades to get the experience and after some time, you can up your profits by trading with more money on the same risk level or by raising the risks you take.
That’s the power of experience & knowledge! And I see, pro traders are trading with a decent monthly target!
  • #236
  • Dec 13, 2019 8:10pm Dec 13, 2019 8:10pm
i have a interesting question ,
what you think
there is any difference between knowledge and experience ?
sometimes i feel its all about same issue.
its all about same issue.
  • #237
  • Dec 16, 2019 5:43pm Dec 16, 2019 5:43pm
Quoting Dopey
{quote} This is a problem with learning to trade...too much theory. The only way you will ever know how much you can bear losing is to start losing. Also, you have to deal with the constant fact of losing, separate from the money, beating on your mind. I've been through some very long losing streaks, but hung in because I didn't go beyond my loss limits. It's like anything in life, theory is great, and necessary, but the theory needs to be put into practice. The results then inform the theory and the theory will change. Then more application, more...
Consider this: Per my strategy, I should be able to fill 200 ES lots, and using a 4 point stop, I would have to have a $4.0M account to trade this size utilizing a 1% risk per trade. Margin on this size position would be $100,000; triple it to account for intra-position volatility and be able to keep trading size after a loss or two. This means that I would have $3.7M sitting in an account doing nothing other than satisfying a risk per position. That makes no sense.

Instead, have two accounts: $300,000 for trading maximum position size for the strategy and $3.7M in a separate account at the very least earning bank interest, or better yet ultra-short term municipal bond fund providing tax-free yield. The risk per trade in the trading account is 13%, but the risk per overall invest-able assets remains the same at 1%.
Small disciplines repeated with consistency lead to great achievements.
  • #238
  • Dec 17, 2019 12:30am Dec 17, 2019 12:30am
when time to scalping
which amount of risk percentage is more appropriate ,

sometimes scalping causes a great risk and fall a trouble situation.
  • #239
  • Dec 17, 2019 6:59am Dec 17, 2019 6:59am
Don’t open multiple trade’s position at same time! I had the same problem, and now I don’t open more than 2 trades but never in the same pair.
  • #240
  • Dec 17, 2019 3:32pm Dec 17, 2019 3:32pm
Quoting MarkFxAnde
i have a interesting question , what you think there is any difference between knowledge and experience ? sometimes i feel its all about same issue. its all about same issue.

interesting ...

but my thought here someone who has knowledge can maybe not necessarily trade well but knows a lot of information. But if your not getting involved and utilising this then what does it matter? you may as well be an advisor

experience and learning from positive and negative experiences are valuable. You are first hand in trading situation...

its like this many people can do analysis expertly you see it all over youtube but only a few are profitable
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