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Funny, but, OP, there is nothing in common between risk and capital used. I can put in 10,000 into a trade and risk $17 plus trading fees by establishing a sell point if the trade goes against me. I can also put in a 10,000 trade with no risk limit and be risking the whole amount. The question...

From the point of entry, 2% of my account with options. But once the trade is profitable, I have a completely different method for following it which sometimes allows for an estimated 60% retracement in hopes of staying in for the next portion of a move (i.e., 10% winner turns to a 4% winner if...

Not sure, I'd have to look up what arbitrage is. I'm sure it's directional though. I base my analysis on crowd theory. The agreement or discord between five crowds trading on five different time scales (day traders= crowd 1, Swing traders = crowd 2, long term investors = crowd 5) will determine...

Easy. I win about 2 of 3 times. That's 67 wins of 100, and 33 losses of 100 on average. Multiply the wins and losses by the Risk/Reward ratio. Mine is about 1/4. So I lose 2% of my account on the losses (33% of the time) and gain 8% of my account on the wins (66% of the time) on average. One...

Hey, that's pretty good! I washed out exactly 6 times (16% x 6 = 96%) before trading consistently. I like the reasoning. :)

Takes a humble man to admit he doesn't know what an SMA is. No worries my friend, but, for future reference, google holds the key to unlocking many mysteries. Fib stands for Fibonacci. That's a theory in market movements that the market moves in uniform scales like the increasingly larger...

Very true. Trading is an emotional game, not necessarily an intellectual game. The way I see it, the formula for winning is (emotional stability) x (the system you use). Let's say the system represents 100% on a scale of 1-100. No matter how emotionally stable, the limit of the trader is the...

If you're going to trade other people's money, I would look up the exemptions to RIA's (Registered Investment Advisors) and make sure you qualify for the exemptions. Chances are you do, but there's no harm in being safe. As an example, in Texas you can have up to X number of clients and up to Y...

Did you backtest that theory? I mean, how could anyone even know that?:p

Alexander Elder in Trading for a Living points out that the market is a mass of people. So, when you ask how much the market is overbought/oversold, what you're really asking is how much money do investors/traders have available to buy more stocks with? This is a difficult question since there...

There are some virtual sites out there. I have an OptionsXpress account that has a virtual trading platform within it. I'd say the best way to papertrade is to push as many buttons as possible. It's one thing to write "buy/sell at $___" on a piece of paper and keep track of your wins/losses...

1213.40

Free advice is often the most expensive advice.

I think there are factors that affect movements which, if known, can lead to something close to prediction. For example, it takes money to buy a stock, and it takes buying to move the price up. If I buy with my whole account, I can't buy more. And, again, no buying means no upward movement. So...

OP I have to have respect for your question. It takes guts in a crowd like this :p half a million dollars per trade is a lot. The capital that it would take to achieve that, though, is also a lot. If you're making 500K per trade, the question is, what are you doing with all that money...

Yeah, I've said something similar to this before, but that belief stems from being stuck with a mentality that a trader has to be smart, or right, or good, or talented, or whatever to be profitable. I wonder sometimes, since they believe it's not possible to be profitable, why they trade or even...

I risk the same portion of the account for each trade, but not the same price per stock. If my trade setup is calling for a 30 cent risk limit per share, I multiply 30 cents times the number of shares that would give me my risk limit. That's how I do position sizing. If my trade setup is calling...

Perhaps most of the people you surround yourself with are not good for a trader to have as friends. Or just not good to talk with about trading.

Funny, but I actually do just that. I post trades on my blog a few hours before they happen, talk about risk limits, and exit signals, and let people comment. And still the couple of followers I have can't trade like I can. The number 1 secret I have is that I believe my system. And I believe...

There are lots of benefits to trading. First, character development. Trading is the best mirror I've ever used to see what was inside of me. And after dealing with it, I'm a better person. Second, if I didn't trade, all those poor people who are suffering from heart attacks because their...