Poll: How much do you risk per option?

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  1. #11
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Kolyo View Post
    I don’t see any discussions here. Maybe it is time to recap our knowledge and understanding of the money management in general. What is your experience with money management and what are your advices to the others?
    My advice is to always use it... money management. It makes trading so much easier, no worry about how much to trade or if you might lose your ass... takes a lot of stress out of the equation.

  2. #12
    Moderator Kolyo's Avatar
    Agree with you Michael! Most important thing to do is to remove stress from the equation and everything will come to a place!
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  3. #13
    Senior Member vulgartrendkill's Avatar
    I had a discussion with my account manager at a broker and he suggested that the reason I am not successful at trading is that I lack "liquidity" as an example he send me a screen cap of his recent trades.

    it went like this:

    50 trade loss
    50 trade loss
    100 trade loss
    250 trade win.

    he suggested I do similar.

    That looks like a martingale esque strategy to me. I am probably going to use Ayrex, and my idea is to only trade 5 per trade with a initial deposit of 100.00. Any thoughts? Is the broker right? Should I stick to a static trade size?

  4. #14
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by vulgartrendkill View Post
    I had a discussion with my account manager at a broker and he suggested that the reason I am not successful at trading is that I lack "liquidity" as an example he send me a screen cap of his recent trades.

    it went like this:

    50 trade loss
    50 trade loss
    100 trade loss
    250 trade win.

    he suggested I do similar.

    That looks like a martingale esque strategy to me. I am probably going to use Ayrex, and my idea is to only trade 5 per trade with a initial deposit of 100.00. Any thoughts? Is the broker right? Should I stick to a static trade size?
    that is total martingale and complete BS. you should not do this, plus, the guy you talked to only wants you to deposit more and lose more so he can make more... stick with money management and small trades, focus on making good trades and keeping your win/loss ratio above 55%.

  5. #15
    Senior Member vulgartrendkill's Avatar
    Quote Originally Posted by Michael Hodges View Post
    that is total martingale and complete BS. you should not do this, plus, the guy you talked to only wants you to deposit more and lose more so he can make more... stick with money management and small trades, focus on making good trades and keeping your win/loss ratio above 55%.
    Thanks Michael, thats exactly what I thought. I mean this broker is from a highly rated and regulated company, and he was basically trying to get me, as you say, to put loads in and not as he said become a better trader. Not only that but considering he had 3 losing trades and only 1 winning, i`d say his strategy needs amending, not mine!!!!

    What do you think about using a static trade size? eg stick to 5 monies per trade? I`ve read somewhere that you can increase so you stay at 5%. So 5% of 100 is obviously 5, 5% of 200 is 10 and so on?

    Thanks again

  6. #16
    Rookie Member
    You should pay down debt in an aggressive manner, because holding back debts is one of those things which don't let you work towards broader financial goals.

  7. #17
    Rookie Member
    Another thing you can do is to always engage in Margin Trading with only your risk capital. That one is, as we know, a double-edged sword.

  8. #18
    Banned
    good to see this kind of post

  9. #19
    Moderator Kolyo's Avatar
    Trading on margin especially larger than 10:1 include much greater risks than fixed bet trading. It is possible that sometimes due to unexpected market volatility you can lose your entire capital in one single trade (many examples like Swiss Frank earlier, British Pound last year and many more). Trading binanry options is safer and more predictable in terms of risk taking!
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  10. #20
    Junior Member BinaryScamSniffer's Avatar
    Even if the collaboration with the broker arouses no doubt, most of the newbies are still afraid to invest considerable sums of money, or on the contrary, soon afterwards get caught in the game and lose the sense of limit out of excitement.
    This is a major problem, even decisive, because poor money management is the reason why many traders give up on this activity after losing their capital, which can be observed even on this forum. This problem can be broken down into two main points: ‘How many trades to execute/ positions to hold?’ and ‘How much should I invest per trade?’.
    Starting with the number of trades, it is important to remark that in the initial stages the main purpose of trading isn't making money, but rather educational: building strong fundamentals and defining your strategy. Don't expect six digits earnings the month you start, as a beginner you must make fewer trades, but analyse the results and what was the main cause scrupulously. With experience you can gradually increase the number. The issue is that most of the brokerage firms offer a significant discount if the number of trades per quarter exceed a particular limit. Being motivated to reach that number and pay less for the services, traders often forget about the quality of each trade. Begin with a few ‘demo trades’ and increase the number as you get more experience.
    The second aspect is more of a soft spot as it sometimes seems natural for rookies that a significant investment means high reward. However, the recommended investment per trade is the twentieth part of your account. This strategic approach alleviates stress as in the worst case you only lose 5% of your funds.
    To conclude, don't forget about the golden rule ‘Invest only the money that you are not afraid to lose’. Don't let the heat of the moment or commission discounts decide for you.

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