POLL: What is your uncle point?

candletrader · May 8, 2002

Dearest Brethren,

It would be interesting to gain a feel for how much we are willing to lose on a given trade...

Please vote in accordance with your average uncle point...

Candle

greydeath101 · May 8, 2002

Is this per 100 shares?

Bono · May 8, 2002

It would have been better to put it percentage perms, like :
a) 10%
b) 20%
c) 40%
d) 80%
and e) 100%

candletrader · May 8, 2002

Originally posted by greydeath101
Is this per 100 shares?

Its an absolute dollar amount...

Rigel · May 8, 2002

Lately it's been about 2 cents before the direction changes. Uncle!.....Pause.....Oh s#!t.

candletrader · May 8, 2002

Originally posted by Rigel
Lately it's been about 2 cents before the direction changes. Uncle!.....Pause.....Oh s#!t.

ROFL! ... tell me about it!

candletrader · May 8, 2002

I hazard a guess that those voting for category 6 are swing traders with longer trade horizons...

NiteRider · May 8, 2002

I've been watching this thread as it is related to my stoploss thread last week.
I am surprised to see flat dollar amounts as the only catagories when most money management systems I've seen and use follow a % system. Risk vs. reward presets and a maximum loss % of total account bankroll to decide maximum position size.

Am I missing something here or were you trying to guage the multi-day traders vs. daytraders by using a flat dollar amount.
Or further still the percentage of large account holders here vs. smaller size accounts.
Seems to me you guys with million dollar accounts will laugh off $500.00 (to a point) compared to say a $35,000 account holder.

Just wondering if I have missed a money management theory somewhere after reading this thread.

pitufo · May 8, 2002

I try to keep my losses to two or three cents, not always possible though, if I am lossing that much then I get out right away, usually I try to get out as soon as it didn't go my way within a few seconds, thus trying to scratch. If I trade 4000 maximum position then 3 cents would only be $120.

candletrader · May 8, 2002

Originally posted by NiteRider
I've been watching this thread as it is related to my stoploss thread last week.
I am surprised to see flat dollar amounts as the only catagories when most money management systems I've seen and use follow a % system. Risk vs. reward presets and a maximum loss % of total account bankroll to decide maximum position size.

Am I missing something here or were you trying to guage the multi-day traders vs. daytraders by using a flat dollar amount.
Or further still the percentage of large account holders here vs. smaller size accounts.
Seems to me you guys with million dollar accounts will laugh off $500.00 (to a point) compared to say a $35,000 account holder.

Just wondering if I have missed a money management theory somewhere after reading this thread.

I know what you are saying... in accordance with money management principles, risk as a % of equity should remain constant and $ risk should be a variable... but I am one of those kids who risks the same $ amount whatever size my account has grown to (i.e. % risk of equity declines over time)... what I try and keep constant is my share size... its a comfort level thing and I think many traders do the same thing