All:
You often hear people say allocate no more than 5%/2%/1% of risk capital per trade. But when you read through market wizard type interviews, you find guys recounting their rags-to-riches stories of how they made it through a few big trades. e.g. between Druckenmiller and Soros:
"How big a position do you have?" he asked.
"One billion dollars," I answered.
"You call that a position?" he said dismissingly. He encouraged me to double my position. I did, and the trade went dramatically further in our favor.
Now ET community already has many discussions on Soros so no need to focus just on him. What I'm curious about is why these guys who made it through huge size trades tell people they should be very prudent with capital per trade.
Am I getting the wrong impression? Do the Pros size their trades like how people are suppose to or do they "go for the jugular" more often than they would like to admit?
What do you think?
You often hear people say allocate no more than 5%/2%/1% of risk capital per trade. But when you read through market wizard type interviews, you find guys recounting their rags-to-riches stories of how they made it through a few big trades. e.g. between Druckenmiller and Soros:
"How big a position do you have?" he asked.
"One billion dollars," I answered.
"You call that a position?" he said dismissingly. He encouraged me to double my position. I did, and the trade went dramatically further in our favor.
Now ET community already has many discussions on Soros so no need to focus just on him. What I'm curious about is why these guys who made it through huge size trades tell people they should be very prudent with capital per trade.
Am I getting the wrong impression? Do the Pros size their trades like how people are suppose to or do they "go for the jugular" more often than they would like to admit?
What do you think?
