MightyOne wrote:prochargedmopar wrote:
It appears my max risk in pips and $ amount on this AJ trade is the
If you are forced to reduce your position size then all of your losses are multiplied; if you lose 100 pips
and drop your size from 3 units to 2 then your total loss is now 150 pips (at 2 units).
If you lose another 100 pips and reduce from 2 units to 1 unit then your total loss is now 500 pips; you lost 200 but you're down 500!
It is critical that you maintain & increase your account & position size; you should have a regression method in place but it should be catastrophic.
Be frugal with your account balance, value every tenth of a percent, but be generous with the influx
of space & willing to spend it all.
As a market wizard once said "If I valued every dollar (OPM) then I wouldn't make any money"
It is less risky to trade $6.000 seriously than it is to trade $1.000 haphazardly.
Start at minimum size, 0.02% of your account size, and accumulate only what is needed to bring the
target to within range of a daily candle.
There are a million people who are smarter than I am but few people who are more creative; let other people carry you where you are weak & carry others where they are weak.
As cool as it is to be a lone wolf, success is usually a team effort.
So .02% is your value per pip? With a 40pips stop you risk
.8% of your account.
Yes it is less risky to trade seriously verses haphazardly with any size account.