Trading basics - a quick poll

How would you allocate your capital between Trade A and Trade B?

  • I would put more capital into Trade A

    Votes: 20 76.9%

  • I would trade them both with identical amounts of capital

    Votes: 6 23.1%
  • Total voters
    26
Quote from Cutten:

Let's say you have two trading opportunities. Trade A has a 90% chance of winning, and will pay out 5 times your risk. Trade B has a 51% chance of winning, and will pay out 1:1 versus the amount you risk.

Would you trade these the same size, or would you put more capital into trade A?
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How could you or anyone else KNOW the win percentage on that trade? Even at 90% :confused:
 
Quote from Thunderdog:

It just occurred to me. I had thought he was claiming "always in and never a loss." In fact, it seems that what he meant was "always in riddles and never at a loss" for words, words and more words.
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There is not much fun here without Jack! :D
 
Quote from Compulsive:

How could you or anyone else KNOW the win percentage on that trade? Even at 90% :confused:
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We on ET, after following Jack's teaching, usually don't ask this kind of intelligent questions! :D
 
Quote from OddTrader:

There is not much fun here without Jack! :D
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Quote from BSAM:

Hmmm.....No trade has a 90% chance of winning (or losing). This should be understood in "trading basics".
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Not true. Now whether or not it will pay you 5:1, that's a different story.

Joe.
 
Quote from u21c3f6:

Not true. Now whether or not it will pay you 5:1, that's a different story.

Joe.
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So, are you a fortune teller, or just an inside trader?
 
Quote from Cutten:

Let's say you have two trading opportunities. Trade A has a 90% chance of winning, and will pay out 5 times your risk. Trade B has a 51% chance of winning, and will pay out 1:1 versus the amount you risk.

Would you trade these the same size, or would you put more capital into trade A?
More...

Practically the final outcome might be trading simply with allocating more capital to B by reducing much capital from A, as long as B of such relative low performance is evaluated worth for your consideration.
 
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