MightyOne wrote:Instead of a flat x% I will risk x% per pip so that my space can be of any size.
$400+ accounts: 0.025%, 8x smaller than 2% over 10 pips
$1000+ accounts: 0.01%, 20x smaller
$5000+ accounts: 0.004%, 50x smaller
$10000+ accounts: 0.002%, 100x smaller.
The #1 rule to making money is that you do not lose it; the closer that you can get to risk free the better.
...but I don't trade for pennies!
Yes you do
But just as $0.02 doubled every day for 26 days is a large number, so are your pennies multiplied over a period of
time to a large number; $0.20/pip doubled once per day for 14 days becomes $3276/pip.
When I set a weekly loss limit of 0.5% then it looks like this:
(0.5% / 0.002) / 50 space = 5 trades.
Yours might look like this:
(5% / 0.025) / 40 space = 5 trades...
& by 'trades' i mean the total destruction of 'space' (DoS Attack? lol)
Now you can see how when I lose 35 pips at 0.002%/pip, for a loss of 0.07%, I bust out and move on to the next trade; at this risk level, +39% is lost in hundreds of trades! Losing my money becomes a full time job
When your initial size is small then you can take big gambles because there is 'nothing' to lose and everything to accumulate.
But when your size becomes very large then you need to sober up and move with the larger charts.
Hopefully you can finally see that Space Wars is not pips, it is about conquest.
Ok, Ok, yes, I do trade pennies. LOL
I need to ponder this today, I just can't see how such little itty bitty can become so friggn big.
And yes, with the risk your taking. Losses are a Joke on the market.