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Brian;
Very professional and informative post concerning risk can't imagine
anybody not gaining from reading it I know I have thanks.
Robert
>This thread has been good for me because it has confirmed my belief, that
>FOR ME the 2% is not valid. It's too constrictive and too limiting to
>trade futures markets with. Futures markets involve huge amounts of
>leverage which by definition involve more risk. I do not trade a system
>though I have an approach that is consistent. My entries are determined by
>how much risk I think there is (support/resistance). Position size is
>based on how likely I think success is or what the probability failure is.
> If it's low, I go in bigger, if it's high, I trade small looking to
>pyramid if I'm right. I like to pyramid because I already have the markets
>money in hand. While I haven't done the math, I find that I don't like to
>risk more than 200-500/contract. This figure has evolved because I know it
>is relatively easy to quickly get it back. I would rather take several
>small losses than one large one because psychologically it's easier to
>continue trading and I know my history of, at worst, 33% (1 in 3) trades
>working out. I am looking to quantify my approach a little more thus the
>thread.
>
>
>I hope that this has given new traders food for thought. I wish I had had
>this when I started.
>
>DISCALIMER: If I've misunderstood or misrepresented anything here I
>apologize.
>
>
>Good Trading,
>Brian.
>
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