Was thinking yesterday it might be a good idea to define some MM terms before going into a particular method. So, I think I'll touch on two basic ones for starters: Drawdown and Expectancy. FX4

What Is "Proper" Risk/Money/Trade Management?

Longer time-frames sound like a wise plan. Did click a link in your signature but didn't spend too much time to see all the detail. Scalping your way outa trouble...you've got some skills . Would it be safe to assume that you increased ...

What Is "Proper" Risk/Money/Trade Management?

Yes WadeWade, It should definitely be based on what the trader is willing to lose... And... Account calculations can be dangerous if followed without paying attention to how a trader is performing or what the market is doing. Flexibility is key, ...

What Is "Proper" Risk/Money/Trade Management?

Small risk percentage: under 3%. May I ask...do you swing trade or trade longer time-frames like H4 and up? Also, do you have a very specific trading system or are you more of a discretionary trader? FX4

What Is "Proper" Risk/Money/Trade Management?

Market Structure is so key! Seems to me like you're a dangerous trader, just making money coming and going. FX4

What Is "Proper" Risk/Money/Trade Management?

Thanks No-Luck. I like the .5% better to test the waters. For me that's where micro-lots come in handy. Thanks again, FX4

What Is "Proper" Risk/Money/Trade Management?

Pipmutt, I only asked you what you thought was reasonable because you used the term. I thought you had a percentage in mind. As long as you keep risk at/below a reasonable level then it's impossible to overleverage. ...

What Is "Proper" Risk/Money/Trade Management?

That almost goes back to what you said earlier. Risk Management begins with what the trader feels comfortable with. That I certainly agree with. If trading billions is beyond the risk appetite or the emotional trading muscle/appetite of the trader, ...

What Is "Proper" Risk/Money/Trade Management?

Hello traders, I hope to have the weekly wrap-ups posted on the blog by the start of the US Session today. Trade well and take care, FX4

Pitchfork Goldmine!

We don't have to trade like them if they lose, but maybe their money management strategies are good. The tremendous risks they take are not what makes them lose (though tremendous risk is relative), it is where they enter the market and when with ...

What Is "Proper" Risk/Money/Trade Management?

Agreed...not every scenario. Would be interesting to learn methods that professional traders use. FX4

What Is "Proper" Risk/Money/Trade Management?

What do you consider a reasonable percentage? Every "scenario" would be a major challenge, but various methods may not be as difficult. There are many discussions about systems, this and that...really and truly, everything on the planet can be ...

What Is "Proper" Risk/Money/Trade Management?

That is a good way to take profit, especially if you're there in front of the screen. Here's a method to determine if your system is operating at breakeven... ...or better or worse. Just a little something I found online. FX4 P.S. EDIT: By the way, ...

What Is "Proper" Risk/Money/Trade Management?

Yeah...it can be done, and without darts flying!!! FX4

What Is "Proper" Risk/Money/Trade Management?

Hi Custos, From skimming through the thread I think the most important thing has been left out with regards to money management and you guys seem to approach the whole money management thing from the wrong side. The major question which should lead ...

What Is "Proper" Risk/Money/Trade Management?

As long as you keep risk at/below a reasonable level... What level/percentage of account balance do you consider "reasonable"? Any suggestions from other traders? FX4

What Is "Proper" Risk/Money/Trade Management?

Before moving on, I guess we should discuss the idea of breakeven and how to calculate it. Hope we're not in for another round of discussions LOL. Breakeven suggests zero loss and zero gain on the trade. Let's say you bought EU at 1.2344 ASK/1.2342 ...

What Is "Proper" Risk/Money/Trade Management?

So, thus far, a very straightforward, effective and simple way to calculate position sizes given the desired risk percentage and trading account size has been given. A variation of the same is given here. Next we'll be delving into another approach. ...

What Is "Proper" Risk/Money/Trade Management?

I know they are not needed for these calculations, but I like being aware of what the margin requirements are and the leverage. Maybe it's just habit. FX4

What Is "Proper" Risk/Money/Trade Management?

Calculating Your Position Size — Thanks to the patience of Forex5050, here's the deal: A trader has $1,000.00 in an account and is using 1:10 leverage. They are willing to let the market go 30 pips against them, but want to risk/lose no more ...

What Is "Proper" Risk/Money/Trade Management?