Risk same amount for every trade?

[Zr1Trader]

Do you risk the same amount for every trade? Say .5% of total account or does it vary?

Just curious to what the majority are doing.







Personally , I risk the same amount on every trade because I don't know in advance whether an individual setup will fail or not. Others may argue that some of their setups statistically have better odds than others and may risk more for those setups. What say you?

 

[J.Joseph]

I risk the same portion of the account for each trade, but not the same price per stock. If my trade setup is calling for a 30 cent risk limit per share, I multiply 30 cents times the number of shares that would give me my risk limit. That's how I do position sizing. If my trade setup is calling for a 60 cent risk limit, I can only get half the number of shares to have the same risk.
I'm sure you knew this already, though. I mention it because I've heard people complain about risk limits. They say, "An 'X' amount risk limit is so arbitrary. I can't have that same amount every time." They don't understand position sizing I guess.

 

[deadbroke]

Quote from Zr1Trader:

Do you risk the same amount for every trade? Say .5% of total account or does it vary?

Just curious to what the majority are doing.







Personally , I risk the same amount on every trade because I don't know in advance whether a setup will fail or not. Others may argue that some of their setups statistically have better odds than others and may risk more for those setups. What say you?

Robot!

If anybody didn't know what the definition of ROBOT is, now you have cleared it up.

Try to be a little more creative, Z - the ability to differentiate is the key to analytical behavior.

There are some situations that demand the "big swing" that even chump warren buffet talked about.

Barack Obama took the big swing and cott the biggest prize - just an example - yeah everyone hates him here - they can suck my dick. I still love him will vote for him again.