bredin wrote:Newscalper,
If you define 'losing' as completely destroying space, so that money on the Leverage side of the ledger has to be moved into the Risk side, then I have not lost in 2 years.
Ive had some good runs of losing positions in that time, and after this Im not sure that its possible to completely destroy space, without deliberately doing so.
G.
As I think and double think, this sounds like, the more money you have, the harder it is to lose.
Take for example:
I wish to risk 5% a week
$1000 Account, 5% = $50
I start my entries at 5:1lev i.e. 5% gain/loss per 100pips
Starting entry = 5lots, b/c, .50/pip * 100pips = $50
Therefore,
(5/1) * 100pips = [highlight=white]
500pips, is what my space can potentially be expanded out to[/highlight] --to survive my errors in judgement--
However,
$2000 Account, 5% = $100
I start my entries at 5:1lev i.e. 5% gain/loss per 100pips
Starting entry = 10lots, b/c, 1.00/pip * 100pips = $100
Therefore,
(10/1) * 100pips = [highlight=white]
1000pips, is what my space can potentially be expanded out to[/highlight] --to survive my errors in judgement--
Conclusion:
Even though in both scenarios, my risk is 5% spread out over 100pips, in the case with the bigger account, I can have much more wiggle room for protection of my risk capital, while still only risking 5% of my account total.