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Futures-Dec wrote:
>
> Good morning everyone,
>
> When talking about money management technique, we often hear about the
> 2% rule, sole rule to survive in the long run.
> Is that rule applying to the total account or only the total equity
> less the legal deposit ? (I mean only the "real" money you can trade
> with without suffering margin calls).
>
> Thanks to all.
>
> G. Annee
What you want to look at is the total account or Account Net Liquidating
value. The margin money (legal deposit?) should be of minor importance.
Basically, you want to limit your risk to a certain percentage of your
total account for any one trade. There is nothing magic about the 2%
figure. Many successful futures money managers use amounts as low as
.5% to as high as 10%, but 2% is a good place to start.
Eric
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