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The % risk figure in trading refers to the account capital risked as a percentage of the total account capital. This is because of leverage impacting position size. The % risk figure in investing, where there is normally no leverage, usually refers to % of the individual share's purchase price.

No more than anybody. Lot of traders have low win rates but high risk:reward ratios, so when they win, they win big. Low win rates in trading are not uncommon if like most traders you just enter/exit on chart features, with no other analysis input.

The 2% rule is very applicable to short-term multi-day traders, not necessarily scalpers and other intra-day-traders. The rule I was taught for long-term shareholding was 10%.

Sorry, yes. The 1.5% risk is the maximum loss from account capital incurred if the stop-loss is hit. As I say, I can usually exit before the SL is hit as TA worsens, but 1.5% per trade would be the worst case scenario (barring exceptional price moves that jump the stops). Its a difference in...

I haven't traded stocks for a few years now, I am exclusively trading in forex. I am in the UK so subject to ESMA rules on leverage - 1:30 is the max. For better or for worse. As an aside, I don't believe you can get true diversification in stocks anyway, its a mirage sold by stockbrokers who...

Currently 1.5%. In the past I have been as high as 5% but only in special circumstances. Hoping to get back into that territory as a matter of routine. I don't often lose the full risk capital: usually find I can close a weakening position on TA before it hits the SL.

Actually, the clear winner when it comes to ranking useful patterns would be - trend. If you can identify and commit to obeying trend it will keep you out of high-risk low-probability trades. It will also give you a better win rate with more winners per year. It will stop you getting whipsawed...

Good summary. You might have given credit to Alex Elder. I'm currently on 1.5% account capital risk per trade. I have been as high as 5% in special situations. I hope to one day be making enough money sufficiently consistently that I can (safely) escape the tyranny of the 2% rule.

As long as a belief like this makes you happy, this will lead to a contented life. But the problem with unfounded beliefs is that there is now way to judge a good one from a bad one. All beliefs, all faiths must be equally respected as none can be criticised in detail, for their contradictions...

Absolutely right. If you start with $1000, how much is the maximum you can save? $1000 of course. But if you speculate with the $1000, there is no upper limit to what it can return. No doubt this couple did the right things by reducing their discretionary spend. But real wealth will come...

The date of the UK's exit from the EU will be known in advance, also the conditions if any. It won't be an event so much as a process. Very possibly the GBP will not change a penny from the day before Brexit to the day after, the exit and its conditions will be priced in. Right now the question...

Most agree economically it is bad for the UK short-term. But long-term any argue it will be better. The Brexit referendum result was not based on economic evidence, it was a political vote. Politically speaking, a no-deal Brexit is either better or no worse than any kind of partnership...

Never heard the term covariance. Is it just correlation by another name?

Trading large numbers of instruments simultaneously works in certain situations. But only in those situations. The only two I'm aware of would be trend-following and the MA cross-over. Its accepted that prices only trend for a minority of the time, so for the strict trend-follower there is...

The 7 Habits of Highly Effective People, Stephen Covey. After I learned his rules for time management, I went back to my desk and re-organised everything and never worried about workload again. But actually, it contains much more than ways to be more efficient at work, its a genuinely a...

My set of open trades has just gone in the money and two more have triggered since 7. Having a cool glass of Medoc.

There's two types of socialists - those who haven't got much and think they should be rewarded for this, and those who've got plenty already but can afford the time and effort to exploit the first type without actually working.

Steady guys. The politician with zero chance of gaining power can promise whatever he likes because he's never going to be called on to actually deliver.

This has been an interesting discussion. I'm in the UK and I see some aspects of it would apply to traders here too. The position here in England is that when you apply to a broker for an account you will be required to state your occupation if any and all financial incomes, possibly also to...

I'm almost always going to be long the Dow because of the upward bias. Not buy-and-hold but buy and exit next week and buy next day and exit the week after. I never short the Dow but I will take a punt on shorting it from close to open next time it gets into a bear mode.