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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures -- Ignore unavailable to you. Want to Upgrade?

To: stock2005 who wrote (9717)	2/14/2006 4:19:31 PM
From: c_hl	Respond to of 12411

There is no clear cut. It all depends on ur hit rate and risk tolerance.

To: stock2005 who wrote (9717)	2/14/2006 4:54:14 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 12411

Thank you... I'm not sure how you're asking the question... if you're asking how much of your risk equity should be committed for trading, I would say no more than 20% to 25% of your risk equity... in other words, if your trading account is $100K and the initial margin for the big SP contract is $20K, then I would only trade one contract, no more than that, this means no more than 20% committed at the most, even if the maintenance margin is less... so, if your trading account were $1 million, then no more than 10 or 12 contracts should be traded at the most... anything more than that would be overextending and you would be trading with "nervous money," a common problem among amateurs... this is only my opinion on how I handle risk... I plan to take every signal and I expect at least 40% to 45% of them to be losers, so I have to be able to absorb those losses until I have a profitable trade... hopefully, the winning trades are big and the losing trades are minimal... so far, so good...<g> GZ