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  1. #1
    Rookie Member Willem4BO's Avatar

    Each trade 25% of capital, to graduate -faster- to 1% of capital !!!

    Before you blast me on this thought, hear me out.

    True, I am the quintessential novice in this trade thing.
    Making all the wrong moves and mistakes you're supposed to make.
    But, with courage, interest, curiousity, and determination.
    I have traded over €40K (in volume!) over the past 8 weeks. My broker loves me....
    I started with a modest amount of €1000, and have ended up around 2000 despite my voracity.
    I have promised myself the next week off, just to really study and try certain systems/approaches.
    One of the systems I am intrigued by is the Getsuga Tensho strategy, which I believe orginates with Michael.

    Regarding the title of this thread:
    I guess we all know that it is best to trade no more than 1- to 2% of your trading capital per trade.
    But the preparing effort for the trade is the same, whether you trade €50, or €500 per trade.
    What is the incentive to crunch your brains if you end up with €30 after 3 (or more) hours of watching/analyzing?

    So, here is my thought/plan:

    If you start with €1000 in capital, slowly trade your way up to doubling it, i.e. €2000 in capital.
    Sticking as much as possible to a routine and strategy that you learn very well and limiting your trades to 25 or 50 per trade, depending on your character.

    Once you get to the €2000, step up and trade €500 instead of 20 or 50.
    Of course, if you miss 2 trades of 500, or the balance gets back down to 1000, you have to build back up again to 2000 with small trades and practice.....

    You protect your "skin-in-the-game", the starting amount of €1000, as much as possible.
    Just putting the "paper profit" of the additional 1000 as risk-trade money.

    In the end, the goal would be to accumulate enough capital to get close to the 1- to 2% trades of capital, but have meaningful profits that are in tune with your efforts.For example a capital of around €20K, and then do 3 or 4 €200 trades per day.

    This approach would only be meant to get to that (more secure) point faster........

    Now I welcome the blast.

  2. #2
    Master Member SeasaltMcFish's Avatar
    The amount you trade is primarily a matter of bankroll.

    If you can easily miss the money, you can take more risk. If you only have 1 bankroll to spend, then you'll have to be very careful and not trade more than 2-5%.

    I'm famous for my crazy bankroll management systems in the Dutch poker world and also like aggressive BRM, but only with money I won before.

    Trading 25% however, is asking for trouble. Even with a system that hit 80%, it would still be a matter of time until you bust.

    Want to try aggressive BRM? Put your maximum on 10%, no matter how good your system.

    Or use a basic BRM and add only a part of your winning to your next trades.

    Since you are new to trading, I would strongly advice you to think over your BRM very good.

    Good luck!

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  4. #3
    Legendry Member Okane's Avatar
    Willem4BO, it's not really that crazy. In fact,
    sometimes I do take that approach but when I am very sure about a trade
    BUT even those can go wrong and since you are only risking the profits
    it's okay so long as you can hold the small investments once you have lost 2x 500 trades
    as you said. If you can maintain the psychology and not jump in with huge trades
    if you lost the 25-50% trades then it's ok.
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  6. #4
    Rookie Member Willem4BO's Avatar
    Thanks for your input! What does BRM mean? Bankroll Management?
    The 10% max you indicate makes sense.

  7. #5
    Rookie Member Willem4BO's Avatar
    Quote Originally Posted by Okane View Post
    Willem4BO, it's not really that crazy. If you can maintain the psychology and not jump in with huge trades
    if you lost the 25-50% trades then it's ok.
    Thanks for your input. I think this is exactly where the fine line is. Difficult!!

  8. #6
    Master Member SeasaltMcFish's Avatar
    Yep, Bankroll Management.

    We use it in our poker community for money management.

    It means the some though, the maximal exposure you take for your buy-in in poker games.

  9. #7
    Legendry Member Michael Hodges's Avatar
    10% isn't too much for binary, so long as you are willing to accept some drawdown and don't let emotion take over.

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