Only lose 1%

M

met1989

Hey I try to stick to the rule of not losing more then 1% of the account but let’s say I have a 25k account and I trade the es/spy comes out that the rest of the money is not doing anything isn’t it a waist ?
 
If your broker pays interest on cash balance, I wouldn't say it's doing nothing. You could also buy bonds or cds if your broker supports that.
 
met1989 said:
Hey I try to stick to the rule of not losing more then 1% of the account but let’s say I have a 25k account and I trade the es/spy comes out that the rest of the money is not doing anything isn’t it a waist ?
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%%
NOT really a waste; dry, ready ammo is part of it.See?? In other words if you lose it - call that a waste or learning deal !! Thanks for the question.:D:cool:
 
met1989 said:
Hey I try to stick to the rule of not losing more then 1% of the account but let’s say I have a 25k account and I trade the es/spy comes out that the rest of the money is not doing anything isn’t it a waist ?
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The 1% rule usually applies to potential loss (if I am right in my assumption to what you are asking) Ie: that is where your stop is for any given trade. Not neccassarily the nominal capital invested.
 
your question is no clear.

are you doing day trading?
1% of $25k is $250.
so loosing $250 per trade sounds ok.

you also must limit your max loss per day to say $500 per day.

also is your account leveraged?
 
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entropytrading said:
if you dont wanna lose a dime, simply stay home and sleep
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In trading the general rule is: if you limit risk, you limit profit too, due to the (lack of) leverage.

Maybe ask your broker if you can tell after the trade what your leverage is. If you win take a high leverage, and if you lose take no leverage. LOL.
 
i prefer to be safe with a risk i want to take ;) when i started trading i didn't use any protection and i erased my account in 45 min
 
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