3% rule only applies...

[GotherL]

Actually that is my point. The commentator has no information on why he trades as he does. If he has a lot more capital elsewhere he might be comfortable trading larger sizes in his small account. The commentator is making huge assumptions when he tells him to risk less. He may not be risking much at all based his overall capital. That is why I pointed out that my friend actually traded 100% of his account and risked very little overall just to make a point.

Ahh ok I thought you were trying to make a literal argument rather than a logical one. In that case, yes he is wrong to assume he was being to aggressive in his position sizing. He could've had millions and that $2000 wouldn't have equal to 1% of his networth. Either way this guy had no idea what he was on about as 3% would still be too low to daytrade with just a $2000 account. The commissions would've taken most or all of his profits.

 

[ElectricSavant]

It sounds like your friend is a very talented trader. How dare some anonymous idiot reciting what he heard on the internet to a seasoned trader!


es

Actually that is my point. The commentator has no information on why he trades as he does. If he has a lot more capital elsewhere he might be comfortable trading larger sizes in his small account. The commentator is making huge assumptions when he tells him to risk less. He may not be risking much at all based his overall capital. That is why I pointed out that my friend actually traded 100% of his account and risked very little overall just to make a point.