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Day traders' after-market lounge March 18, page-29

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wiskers

1,180 Posts.

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20/03/24

07:36

Post #: 72970653
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Originally posted by Endless: ↑

What I try to do is base my bet amount on my idea of the risk factor and how much margin I think is gonna be in the trade. I never really take two bites. I put the $$s on when the SP is most favourable. If I miss the good price I let the trade go once the margin falls. That's my way of risk management.

This is based on the idea that if there is a fantastic trade opportunity and you only make the same $$$s that you make on ordinary trades, then you have actually lost money. In the same way that if you make a large bet on a poor trade then you have lost 'extra' money. Cos at the Eod, it's your total return that matters, not whether you have a 'win' on a single trade.

Staking and risk management are probably more important than picking trades cos your picks should be based on a straight out, objective, tested formula and not any subjective criteria. imo

All easier said than done I might add.

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Thanks for the insight.

My trade yesterday on ABB went south, it hit $3.51 and as I brought the day prior @ $3.55, I stuck to my rule and sold @ a small lose.
Using this rule has save me many dollars, I did note that ABB did get to $3.60 later in the day after hitting a low of $3.47.

Towards the end of the day I brought TPG & ING as both looked over sold, so virtually a nil day despite looking @ the market all day.

We all have our own method & so long as you end up with more money than we started with your a winner.
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