|
Quote: |
|
 |
|
|
The reason people keep limit risk on any single trade percentage of there margin is to prevent blowing up. Your risk of ruin grows significantly as you put more margin at risk on any single trade.
As an example if you had a rigged roulette table that paid red 60% of the time would you bet all of your stake each spin? How long would you last? Would you bet 2%? 10%? 50%? Why?
If you had a roulette table that paid 70% of the time would you risk more? How much more?
The objective is to stay in the game, money will come if you do (and you have a positive edge of course).
Cheers. |
|
|
|
|
Another reason not to overtrade and quit while you're well ahead for the day, and satisfied.
If I really traded ALL of my setups after reaching my daily goal (which was reached by noon EST already), I'd be burnt out and ready to give it all back to the market.
Even as I write this, just glancing at the screen I see 3 more setups which I didn't take....oh the horrors of it all!!!