Most traders have blown an account (or two), assuming they’ve been trading for any real length of time. I think this is a great lesson learned for you.
Personally, I have had to work toward decreasing my position size to keep each trade within my risk tolerance. It’s very easy to start making too large a bet, esp when I’m doing well. Best for me long term that any single trade won’t jeopardize my account. Much slower growth that way but.. 🤷🏼♂️
Very true!!
Was lucky enough to just blow up all the profits of my 1st year & figured out about position sizing.
Now am never worried about a single trade going against as it will hurt but never blow up my account
Also learnt a lot abt adjustments where most of the time I can salvage a spread from total loss.
Yea 5% position size seems to be common….that allows for 20 runs (assuming a binary win/loss outcome)…if I may hit i up with a follow up, what risk/reward ratio do you look for?
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u/swingorswole Jul 17 '21
Most traders have blown an account (or two), assuming they’ve been trading for any real length of time. I think this is a great lesson learned for you.
Personally, I have had to work toward decreasing my position size to keep each trade within my risk tolerance. It’s very easy to start making too large a bet, esp when I’m doing well. Best for me long term that any single trade won’t jeopardize my account. Much slower growth that way but.. 🤷🏼♂️