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Old 30-12-2005, 21:53   #48
ampris2000
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Re: How much to buy w/2% risk of $1k and w/50pip SL?

I'm basically trying to create my own version of what Ampris2000 is doing. I'm not sure if he worked out certain things, or stumbled upon them, but there are several things he is doing that I think are requirements for a successful methodology. The primary being, you have to make a lot of little bets instead of a few big bets. He doesn't (formally) account for volatility or correlated pairs, but as a little guy, he/we probably don't have to.

1. you need to have a good strategy for starters.

2. You can make big trades or little trades, I do both. The thing is not to risk more than 1% - 3% (your choice) (or less than 1%) of your account balance. That's the little area in my spreadsheet that says desired pip value. Then it will tell me where to set my s/l.
sometimes i've made big bets with a tight stop and it wasn't hit, sometimes they are hit before they continue on in the "winning" direction. Either way, I've already been down the street not having a MM plan and it's not fun. You'll blow out your account rather quickly.

3. it doesn't matter if you're a little guy or big guy. Whether you trade $100 or $100,000 dollars.
Why? Because a 1% loss is a 1% loss. A 10% gain is a 10% gain.
That's part of trading psychology to say oh well, I lost $1.00. Then why say on the 100,000- oh no! I lost $1000.00!
It's still the same thing, 1%.

a good quote to learn:
"Forget about the money. Focus on being a good trader and the money will follow."

Last edited by ampris2000 : 30-12-2005 at 22:02.
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