Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
What % of your capital do you allocate to each position?
Just out of curiosity, how much of your capital are you guys allocating to each of your positions? I know that some guys have a higher skill level than others so they're willing to take on more risk.
Can you help answer these questions from other members on NexusFi?
Risk as a proportion of your account should be as low as possible in my view, even when you are more experienced. Because things can always go against you no matter how experienced you are.
Some examples I've seen others use are between 1% to 5% on the very aggressive side, and to also maintain a max daily loss.
While trading my TST Combine account I only take 0.6 percent of risk per trade, which allows me to get hit 3 times in a row by a full stop out without violating my daily loss limit. So I'm able to quit trading for the day and live to trade another day.
Im my Live account I take a maximum risk of 5 percent per trade, but I have to admit that I'm very choosy in the selection which trade to take.
IMO a 2 percent risk per trade is quite common, but long-term you're better off taking only 1 percent of risk per trade.
"If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much." - Jim Rohn
10% max for each position, sometimes less depending on risk and signal strength... and never more than 4 open positions at the same time - i.e. at least 60% of total account remains in cash at all times.
Either case, never risk more than 1% or 2% of your capital on any of the open positions.
Successful people will do what unsuccessful people won't or can't do!
Risking 1-2% per trade - short term trading - is a bit extreme and one of the main reasons why traders lose , few consecutive losses and you are in a handsome DD , its not clear where these figures came from !