Originally posted by martinemem
Look im gold ♦Well ofc i jump on the wagon of trading aswell, since i've been doing it for some few years, and i would love to hear about how many % capital u pull up in avg pr month.
Also how u approach that there isnt only 10 forex's, but more like 50 ♦. (im thinking here how u calculate the daily fees compared to your profit over time (daytrading/weekly/monthly) + how u stop the politician from eating all profits due to rigged markets based on untrue holdings that gets added public when its in their favor - how u decrease the amount of time ur stocks are open (due to daily fees that can eat u up, if u dont set the correct stoploss - OR add more % to the stock (since we cant expect to make a profit of a forex, if we look to far ahead, due to the daily fees (1-2month+)))
I REALLY love how u approach gambling. Its like 99,95% like mine. I trade forex on the same time as i play poker, however trading is a little on hold for me now, because i make like 10x on poker right now ♦
When i started out (no xp AT ALL) i got 100% increase of capital in 3 month, then i deposited 10x capital, narrowed it down so i would expect to get 35% ~ pr 3. month, then i learned that it was still a little too agressive in my opinion, so again, now instead of raping 1 forex (add % every time it drops x%) i invest ALWAYS in 3 at the same time (much less varianse (AA 3 times instead of 1 :))) and it gave me in the beginning pr. month +-5%, but now the % has dropped since my capital has increased so i know im not getting 5% anymore.
SO my question to you - since i know that if u get a 100% increase on ur capital, u still cant increase monthly % by 100% because there just is more than 1 factor (ur profit isnt direct proportional with ur capital) - HOW do you calculate in % how much ur a willing to buy for?Lets take an example
GPB/USD
Price 10£
Gearing 1:50
Pieces/amount 1
Approach Daytrade/sell as fast a possible (daily fee to a minimum)Lets say u are agressive and have 100£ and u buy 1 piece 10£. That works and u repeat maybe 200 times.
Now u have 1000£ and u buy ? pieces (Just mentioned above why it isnt 10x (100£ u bought))So u still have the same % left in ur disposenal capital, BUT when GBP/USD drops lets say 150 points over 1 week, u wont have the same % left in ur capital with 1000£ as u would had with 100£
So since u are a coach ♦ how do you determin what factor is appropiate to divide with ur % buy amount?
It has something to do with the gearing right? So am i totally wrong to say, that u could do something like:
Gearing: 50
Ok, so divide our % buy amount by ex. 15% of the gearing so:
(50/100)*15 = 7.5% (new factor in %)So old buy amount was 10% 10£
So new buy amount is still 10% 100£ BUT now we remove 15% of the gearing (50)
so NEW NEW amount is 92.5£ we buy for this timeAlso since when i thought this through we cant really make a exact plan, because the gearing differ.
So lets take a stock of a gearing of 1:5. This is 10% of the above. So here should we add 90% to the 15% (28.5%)?
(5/100)*28.5 = 1,425% Is this too low factor even though that the gearing is only 5?
Or would it be more appropiate to take 180% of the opposite?
Its still a 10% of the above, so 180% to the 15% (42%)?
(5/100)*42 = 2.1% factorHere we should be able to buy a little more due to the lower gearing (Or am i actually totally wrong?)
Above with 1:50 gearing we took 7.5% off our buy % amt. (92.5£)
Here with a gearing of 1:5 we only take 1,425 % off our buy % amt. (98,575)
Here with a gearing of 1:5 we only take 2.1% off our buy % amt. (97.9£) (double diff bw the comparison of gearing and factor)So we now get an example of another stock:
martinememPoker A/S
Price 48.95£
Gearing 1:5
Pieces 2
Longterm trading (doesnt sell after a week)How does the last example change in your oppinion if we said the price instead was exactly what we can afford, and not 50%.
So price instead is 97.9£ and we only buy 1 piece instead?Am i totally in the woods on this one? Any thoughts?
hey martinemem
sorry but I do not understand your post entirely.
First you talk about some stocks, then about forex, gearing etc and then make an aanlysis of how much to risk.
While I didn't trade stocks, I dabbled with ETFs(quite similar), but not on an investing basis(holding them for weeks or months), but on a day-trading basis(couple of hours, couple of days).
I did not understand your analysis that well, but what I deducted is that somehow, you calculated the risk at 10%. So if you have a $1k account, you risk $100. That is waaaaaaaaaaaaaay too much, and sooner or later you will go bust if every time you trade 10%, that I guarantee you.
As a general rule, risk aroung 1-2% of your account on any trade. But there's another catch.
Let's say your account is 10k.
1% is $100.
Ok so we determined that you are risking $100 on the next trade. Now, it is also very important to determine position size, because a move of 1 point can cost $10 or $20 or $50 or etc depending on your position size and it can take seconds or days to hit your stop-loss (more detailed post will follow).
hope this helps until i write more detailed posts on the subjects mentioned above and in the earlier posts
hope this helps
