How much to allocate to one trade??

[heavenskrow]

The way to attain truly superior long-term returns is to grind it out until you’re up 30 or 40 percent, and then if you have the conviction, go for a 100 percent year. If you can put together a few near-100 percent years and avoid down years, then you can achieve really outstanding long-term returns.

- Stanley Druckenmiller, New Market Wizards

just hit 30 mark as of today, time to go for the jugular.....and then be -7% lol.....

 

[emg]

"Soros has taught me that when you have tremendous conviction on a trade, you have to go for the jugular. It takes courage to be a pig ... As far as Soros is concerned, when you're right on something, you can't own enough."

Do you think Soros actually adopted risk management rules all the time or did he sometimes break it on something he felt very strongly about??

there is a big difference between soros and u. Soros is not a small trader. He is managing more than $25 billion from all type of "whales" investors/money, and of course he will use the word "jugular" based on $25 billion plus accounts and investing all type of investment from real estate, private equity, countries, etc etc etc. That is "jugular".

U, on the other hand, is a "small traders". the word "jugular" does not apply small traders trading. Small traders will lose regardless without starting a career in a trading firm. Soros, early life:

That is how Soros able to managed $25 plus billion today. That is "jugular"



More than 90% of small traders lose! They just lose!

 

[Visaria]

there is a big difference between soros and u. Soros is not a small trader. He is managing more than $25 billion from all type of "whales" investors/money, and of course he will use the word "jugular" based on $25 billion plus accounts and investing all type of investment from real estate, private equity, countries, etc etc etc. That is "jugular".

Soros now manages $25 billion, true. But he didn't start his career with $25 billion, he started the firm with $2 million. His remarks regarding going for the jugular is not based on his current $25 billion (how do you go for the jugular with $25 billion?), but from when he was managing far, far, less (although no doubt more than anyone here!)

Funny you mention this. I found a clipping from the FT this morning dated Feb 10th 2014, headlined "Quantum Nets Soros $5.5billion". The article states he made 22%, but unlike his pound trade in 1992 when 'he went for the jugular', the 22% return was from various strategies of his fund.

The point is that small traders i.e. those with less than $100 million have an advantage over large traders like Soros, they are able to go for the jungular whereas he no longer can due the vast amount he controls.

 

[Visaria]

just hit 30 mark as of today, time to go for the jugular.....and then be -7% lol.....

You only go for the jugular if you have conviction. If you are up 30%, you would bet bigger say 5-10% on a trade that you are convinced is going to win. Naturally you probably don't have too many of these trades appearing.