|
PureBytes Links
Trading Reference Links
|
I think its hard and odds are really against you, if you use a small dagger fighting in
a sword sized competition ring. (because with just one contract, the whipsaws will
still whittle your trading account)
Assuming one has small capital, maybe trade only in the smaller margin instruments, so
that you can still have multiple contracts. Yes, its most important to have tactical
trading plan.
Am just trying to decrease the 95% losers.
Timothy Morge wrote:
> Felix:
>
> If you build your position by using multiple units, I would absolutely agree you
> will have more flexibility in most markets. There are numerous ways to approach
> trading with multiple units, probably more than I have ever thought of. I do
> usually trade with multiple units, but many traders here do not have the capital
> to work with multiple unit positions.
>
> However, the principle remains the same: Don't trade without a plan and don't
> violate your plan. So if you build a multi-unit position and each leg of the
> position has an attached stop loss, then by all means, when you have the three
> units on, stick with that plan. The caveat would be if market conditions change
> or if, in your judgement, news has changed the markets.
>
> It is important for a good trader to know that sometimes, the best trade they
> can make is taking a loss at the correct time.
>
> Maybe other people would like to add to this discussion about managing multiple
> unit positions? I think this is another tool that many traders have not added to
> their trading toolbox.
>
> Best,
>
> Tim Morge
>
|