How much risk capital should one use in a single trade?

[murray t turtle]

Quote from OddTrader:

Hello folks

How much risk capital should one use in a single trade?

Should it be 5%,10%, 25%, 50%, 75% or even 100% from the risk capital?
What do you think?

I thing that the market is so predictable (however still with certain uncertainty), that one mustn't risk less than 50%. This should stay between 50%, 75% and max 100%. Otherwise one can get hurt (opportunity cost/profit) quite heavily.

So, what do you think?

=================
Otrader;
I see you used the ''confused ''[ ]illustration-
keep trading like you can ''predict '' & the market will clear up that confusion in a way you do not like LOL

Also it depends on one's age;
younger you are the more risk they blindly/sunglasses take..... Wisdom is profitable to direct.

 

[ivanbaj]

If you hAve inside info and the trade is a sure thing you need to bet 100% of your net worth

 

[killthesunshine]

.0%

 

[intradaybill]

0% is optimal for most traders.

 

[psytrade]

This guy brings new meaning to the term "optimal f" ... perhaps he can teach us about "optimal wtf"!

 

[candletrader]

Quote from Chuck Krug:

deploy 0.5 % and risk 0.05%

The principle of a money management stop being separate to a hard stop is a good one.

 

[RobertG]

Quote from OddTrader:

Hello folks

How much risk capital should one use in a single trade?

Should it be 5%,10%, 25%, 50%, 75% or even 100% from the risk capital?
What do you think?

I thing that the market is so predictable (however still with certain uncertainty), that one mustn't risk less than 50%. This should stay between 50%, 75% and max 100%. Otherwise one can get hurt (opportunity cost/profit) quite heavily.

So, what do you think?

it seems that before you ask someone how much to risk, you should work on your methodology. At this point, it seems that you have none. Learn to back test a methodology, where you could see what is the risk. I am not trying to be rude, but it seems that you have have "an opinion" that you are trying to capitalize on, and this is the wrong place to ask people about it because its a traders forum. If you have a strong opinion, then risk what you can live with and would keep your marriage alive LOL

 

[OddTrader]

LOL
http://en.wikipedia.org/wiki/Antithesis

http://www.elitetrader.com/vb/showthread.php?s=&postid=2964410#post2964410

Quote from OddTrader:

Here is another scenario:

https://www.thinkorswim.com/tos/displayPage.tos?webpage=lessonExercise

"
A similar situation can occur with short ITM options. You must be alert to the possibility of being assigned on short ITM options, and the margin requirements that you might have to make. For example, if you are short one XYZ May 150 call, and XYZ stock is at $160, your short call may be assigned and you will be short 100 shares of XYZ at $150. You will have to meet the margin requirement for $15000 of short stock. A short put will leave you in the position of having to meet the margin requirement to purchase the stock.

Be aware also that when you exercise an option, you are giving up the limited risk characteristics of the option, for the unlimited risk characteristic of long or short stock.

"

 

[RobertG]

assigned at a loss? Run Forest Run....The stop loss what already hit..

 

[stinkyfelix]

Instead of saying a certain percentage, I'll use the baseball analogy....

Go for base hits, it's steady, base hit after base hit. You'll get to home plate in a very measured, safe way.

Everyone likes home runs! Home runs are exciting and even sexy, but they are few and far between and many end up striking out.

I believe Confucius said the same thing as a child...