Quote:
Originally Posted by bigbear3391
Do Not Over Leverage Yourself
Its up to you on how much of your account is used for trading. Most say you should never risk more that 1% or 2% per trade. Now by risk they mean if you take a loss it should equal 2% or less of your account. So lets say you have $500. Your risk for loss in all open trades COMBINED should be $10 or less. Now in a micro account with average pip value of .10 Cents that means you can withstand a 100 pip loss & be at 2%.
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WISE WORDS!! Thank you Bear! well said... (love the graphic examples)
I keep getting caught in the catch 22 that the safe % of my trading capital does not yield what my time is worth to monitor it. Even though I can make money with this and other methods (manual and EAs) the gains on a safe percent of my portfolio does not pay off for the time that I spend monitoring the trade... Then guess what - I find a method that starts to work well... and I ease right past my safety tolerances to make the experience worth my time and then WHAM! ya - that is the sound of me giving back...
So here I am scrounging the forum for advice and experience on a system that does not eat my TIME to monitor...
Thank you Bear! Great post