ES Journal Archive (2006 - 2008)

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Quote from Buy1Sell2:

I never risk more than 2 percent of liquid net worth.
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I see. And just an obvious comment...
A large number multiplied by a small number equals a large number. In my view, the de facto 2% rule is useful only up to a point which is dependant on account size. At some point a mere 2% is not prudent.

EDIT: even more so (less prudent) if you play with only a portion of funds, yet base risk on all funds.

Good trading to you. :)
 
Hello B1S1,

The beauty of life is we can all be successful and at the same time we can all be different.

Your 3 positions 58.25; 60.25; 52.50
average = 57:00
LOD = 33.50

risk = 23.50 @ 12.50
= 294.00 @ 2% = 14,687
You need $14,687 per lot account backup.

Even if you are only trading say 20 cars that is almost 300K.
At 100 cars that is close to 1.5M.

As I said, we are all different.

best regards
f9
 
Quote from Buy1Sell2:

To better understand my trading, think of my money management like this:

Pretend that I am trading a 401K plan and keep the bulk of money in "safe" investments. I then branch out with small amounts into other "riskier" ventures and I add to those positions as I see fit, but never risking too much (partly because I am only trading with 20 percent of the funds). That would be a great way to describe my money management --Very hard to get whacked that way---
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William Bernstein -

"In poker, the player who is least concerned about the size of the pot has the advantage, because he is much less likely to lose his nerve than his opponents. If you have a properly diversified portfolio, you are in effect making many small bets, none of which should ruin you if they go bad. When the chips are down, it will not bother you too much to toss a few more coins into the pot when everyone else around you is folding his hand. That's how you win at poker, and that's how you win the long game of investing.

"Making small bets with dry hands."
 
Quote from wave:

William Bernstein -

That's how you win at poker, and that's how you win the long game of investing.
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I am not playing poker and I am not investing in the ES.

I am trading it...... major difference
 
I've been long DXD-Proshares Ultra Short Leveraged Dow ETF in retirement acct. Hence,I'm quite relaxed.
Looks like crude spiked up as my USO has rallied a buck from this mornings low.
 
Quote from fearless9:

I am not playing poker and I am not investing in the ES.

I am trading it...... major difference
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If you are following B1S2, regardless whether trading or investing, it's about playing with dry hands.
 
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