How much would you risk on a GOOD trade?

xelite777 · Oct 31, 2013

Quote from macintash:

The question is not if a good trade exists. The question is, if/when there is one how much would you risk. That's it

And again, there is no such thing as a "good" trade. In fact, some of my best trades looked extremely bad right from the start.

That said, a trader should never risk more than 2 to 5% of his capital on any given trade, no matter how "good" it appears to be.

Trading is a marathon, not a sprint.

macintash · Oct 31, 2013

Quote from xelite777:

And again, there is no such thing as a "good" trade. In fact, some of my best trades looked extremely bad right from the start.

That said, a trader should never risk more than 2 to 5% of his capital on any given trade, no matter how "good" it appears to be.

Trading is a marathon, not a sprint.

Got the answer. Only 2% to 5% no matter how "good" the trade looks.
Do others agree?

Swan Noir · Oct 31, 2013

You're awfully picky!

Quote from Bob111:

forget about your measly 95%...every day i woke up with 100% confidence rate. problem is confidence rate is not a proper measurement for this game.i would prefer something like odds or statistical probability

wiesman02 · Oct 31, 2013

Quote from jack hershey:

Cetainty is the basis of my approach.

The policy is to use 94% of capital. 6% is not used so that bar to bar volatility is handled. (Margin is never exceeded.)

At some point in operating a trading platform, there is a recognition that you have to "know you know".

The test for failing at this is getting a whiff of the CW emotions: anxiety, fear and anger.

Greenspan contents that fear and greed are moct significant in finance. Fear far outweighs greed, he explains.

The Arizona Gaming Commission has a motto: "You can't win if you do not play"

Your terminology is filled with "fear". Do you know why you are so frightened?.

Jack, do you use a flux capacitor as an indicator in your trade setups ?

macintash · Oct 31, 2013

Quote from wiesman02:

Jack, do you use a flux capacitor as an indicator in your trade setups ?

Please keep thread clean. This in NOT a thread about jack hershy.
If you have an opinion re risk size for a good trade please post your opinion.

wiesman02 · Oct 31, 2013

Quote from macintash:

Please keep thread clean. This in NOT a thread about jack hershy.
If you have an opinion re risk size for a good trade please post your opinion.

So I get yelled at when Jack is telling people to use 94% of their account on one trade. Hmmmmm

actionzip54 · Oct 31, 2013

Lol 94% of the account with 6% for a margin buffer. That is amazing.

Jack have you ever thought about a career in stand up. Thanks for breaking the monotony of this trading day.

Swan Noir · Oct 31, 2013

Why not 100%? Seems to me once I took a 94% hit on a single trade my frame of mind would make it unlikely I could fight my wayback using the remaing 6%.

Swan Noir · Oct 31, 2013

How else could you have the confidence to risk 94% on a single trade? Only the flux capacitor model HC (high confidence) can make those trades possible.

Quote from wiesman02:

Jack, do you use a flux capacitor as an indicator in your trade setups ?

tiddlywinks · Oct 31, 2013

You people are simpletons.

I don't use JH methods and JH does not need me to run interference.

It doesn't matter if he's eccentric, or if he's the worlds first quadrillionaire or if he barely eeks out less than minimum wage. The guy has half a century of hands on involvement in the markets. If you spent a few minutes attempting to decipher and understand some of his posts you might find some value for yourselves. Perhaps even something that meshes with or enhances your trading.

And for the record, he said his "policy is to use 94% of capital." No mention whatsoever of how many active trades.