Hypothetical 500k

T

tommac

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• Nov 12, 2008

• #1

If you had say 500k to invest would you leave in the bank @ roughly 4.75% or use a chunk to trade for hopefully a bigger return. Just curious how much people would be prepared to risk.( hypothetically of course.)

 

minime69

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• Nov 12, 2008

• #2

if you have £500K in the bank and had no mortgage to worry about, then you could invest £100K and this should give you more than enough ammo in whatever you decide to trade.

thats my view.

 

N Rothschild

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• Nov 12, 2008

• #3

use it all imo so you can trade big size but have a drawn down rule..i.e you lose 100-200k you call it a day.

 

minime69

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• Nov 12, 2008

• #4

with £100K account you can trade most things in big size.

would not put all of it up for trading what if trading company went pop, if banks can go bust so can clearer.

 

N Rothschild

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• Nov 12, 2008

• #5

100k would only be enough for 20 dow e-mini contracts at a time

 

L

luckyd1976

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• Nov 13, 2008

• #6

tommac said:

If you had say 500k to invest would you leave in the bank @ roughly 4.75% or use a chunk to trade for hopefully a bigger return. Just curious how much people would be prepared to risk.( hypothetically of course.)

Click to expand...

No hard and fast rule and of course it depends on how your diversified Time Frame as well as Asset classes

BUT a good general rule is 10% or less on any one trading strategy/idea...