I neglected to add a few of my risk management trading rules to my original post.
1. Never average down.
2. I never moves stops away from my original entry price. Exposure is always reduced.
3. Averaging up is ok but I always maintain the same (or less) dollar risk. For example, if I buy an extra contract as a winning position moves in the right direction, I adjust my stop so that the risk in absolute terms is the same or less. Usually it's a break even stop that has to be moved since the average entry price has moved in the direction of the trade. This adds extra leverage to a winning position but no extra risk. Leverage is a good thing when you are winning, not when you are loosing.
4. Never add to a margin call. I've never had a margin call but if it ever happens, it's an exit signal.
What rules do other people have?
- Forums
- ASX - By Stock
- weekend thread early... topic: risk management
I neglected to add a few of my risk management trading rules to...
-
- There are more pages in this discussion • 8 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add XJO (ASX) to my watchlist
|
|||||
Last
7,982.4 |
Change
31.900(0.40%) |
Mkt cap ! n/a |
Open | High | Low |
7,950.5 | 7,991.8 | 7,950.5 |
Featured News
XJO (ASX) Chart |