What % are you willing to sacrifice to maintain a position?

[Sekiyo]

if you know what the market was going to do would you not go all in?

Not long ago you were sure about 4800.
You forgot to mention the error in measurement.

4800 +- 2000

Anyone can be sure about a number,
With infinite error in measurement.
Anyone but not a risk taker, trader.

 

[Sekiyo]

sorry this is off topic

but if you do the wrong thing risk management cannot save you.

if you do the right thing you do not need risk management,IMO

Trading is All about risk mgmt, scaling and price action. Charts are much less important than you'd expect.

Problem is most educators are non-trading bullshitters who don't trade, so there's no experience in genuine risk management being taught. Hence all they know is TA, which is fractionally as important as stops and scaling. #truth

He does not know that you can go broke even with an edge, advantage.

 

[ironchef]

Even one person I know lost over $100K. Now just think, if that person only risk 1% or even 0.5% of that, the person would still be in the game now and learning.

That person would still get wiped out, but slowly. It is called death by a thousand cut.

 

[tiddlywinks]

That person would still get wiped out, but slowly. It is called death by a thousand cut.

You are assuming consistent back to back losses.

With 100K, risking 1% or less, with a system/method having appropriate positive expectancy and reward, its somewhat difficult to wipe out... running in place is more of a possibility with average discipline and minimal mechanical skills using this level of risk management and system.

 

[smallfil]

I trade for myself.

I have made this 'claim' when specifically asked to do so in this thread.

i do not accept subscriptions nor money like Madoff

so it is your accusations that are arbitrary and personal.

if I am a fraud I am frauding myself.

so please do not make personal remarks just because somebody does not trade like you

I was referring to someone claiming he had a 100% win rate. Bernie Madoff claimed that. What you do with your monies is your business. Never suggested you were defrauding anyone. Was only challenging your claim of being able to predict what is going to happen next 100% of the time. Even the big banks and brokers have only an 85-90% win rate. So, 10-15% of the time they lose. Everyone is going to lose sometime is my only point.

 

[smallfil]

sorry this is off topic

but if you do the wrong thing risk management cannot save you.

if you do the right thing you do not need risk management,IMO

Of course, it will. Being human, you will make trading mistakes. That is a given. Here is how risk management works. I risk no more than 2% per trade. Limit my open positions to just 5 trades at any time. That puts 10% of my monies at risk on a worst case scenario. If I lose all 5 trades, I lose 10% of my monies maximum. At lot of times, my stop loss closes my trade at 1% or even less of a loss. Other times I have a small winner. Now, what is my upside? My upside is unlimited. Since, I trade options (I buy them), I have leverage added. Now, leverage cuts both ways. However, since, my worst case scenario is already covered, I just have to pick trades that gives me a huge potential return of 3, 4 or 5 times my monies. Now, not all price targets will get hit and I will get less of a return on some trades and greater returns on other winning trades. It does not matter because each trade is weighted equally.

 

[NewTraderAdventure]

day trading is out as soon as the "uncle" stop is hit if I don't get out because price isn't going my way. But generally I get out if price doesn't move my way. I'm OK spending a few hundred figuring out whether I'm right or wrong because the payoff is many multiples.

nooby always wins

waiting for a single live trade that cashes

 

[murray t turtle]

Saw -7% & felt too close for comfort. Honestly have probably seen worse in my longs but not while in front of the screen. If day trading, what's your max before bailing? This may be a case by case basis, but what's your general rule?

%%
7or 8%, to make 24% is a good rule for stocks.[ IBD idea/position trade] I had more/slippage/loss that that on SOXS, early JAN/swing/position trade. 7% on LEVI, which turned out much better than 8%/short term trade. 5% some time ago on SQQQ+ can not hold those inverse like a long ETFs. I do less short term trading, 'cause have to use tighter stops/smaller time frame; but short/days term trading=good diversification in time.............................................................
And I don't worry about drawdowns on QQQ....; 'cause its not going to zero like DAL, GM LEH,did.[I label something a trade or investment. ,most of my ETFs investments did better than trading except DEC 2019 + JAN.........................................................................................]