Account Size

This is a discussion on Account Size within the General Trading Chat forums, part of the Reception category; I've been trading using the free bonus money on a number of accounts over the last year or so....every one ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Apr 15, 2009, 8:51am   #1
 
advfntrader's Avatar
Joined Mar 2008
Question Account Size

I've been trading using the free bonus money on a number of accounts over the last year or so....every one is now blown !

What I am finding is that 100 - 200 is not enough to allow proper stop placement and money management, also I feel I am overtrading as I want to grow the account aggresively. this is leading to failure after failure. 1 or 2 trades can blow 50% of the account.

With a demo account of say a 10k though, I can make money.

so my question is what is the IDEAL acount size, 1000 to start with ?
advfntrader is offline   Reply With Quote
Thanks! The following members like this post: Joey25
Old Apr 15, 2009, 9:36am   #2
 
Rossini's Avatar
Joined May 2008
As you say, an amount that gives you a sufficient cushion so you can take a reasonable amount of losses before being wiped out. You must have heard this all before though, it must be painful when you lose (or you will continue to make the same mistakes) but not too painful that you can't afford to lose the money!

Also in my opinion using 'free' money doesn't show the commitment needed for success, its much easier to 'gamble' with money that you didn't work for.
__________________
Do, or do not, there is no such thing as try.
__________________
I'm easily pleased with perfection, and if trading is an art, then I'm painting my masterpiece.
__________________
If the margin between your goal and failure is too small then any shortfall will inevitably lead to failure.
It's far better to aim high because if you don't quite achieve your ambition you may very well be left with something worthwhile.

__________________
Rossini is offline   Reply With Quote
Thanks! The following members like this post: Joey25 , montmorencyt2w
Old Apr 15, 2009, 9:39am   #3
Joined Mar 2005
No less than $50,000. This doesn't mean you then start trading $500 a point, it means that the risk is comfortable enough so that it feels like a game, whilst still making a reasonable income.
Joey25 is offline   Reply With Quote
Thanks! The following members like this post: everyonerich
Old Apr 15, 2009, 10:03am   #4
 
advfntrader's Avatar
Joined Mar 2008
advfntrader started this thread yes but with 1000 and using only 50p per point you could still feel comfortable. its about having enough margin to have a few losers and still feel OK
advfntrader is offline   Reply With Quote
Old Apr 15, 2009, 10:15am   #5
Joined Mar 2009
But what will you do with that, except - pocket money?

$ 50.000 sounds about right to me to also be worth ones time.
NetTecture is offline   Reply With Quote
Old Apr 15, 2009, 10:18am   #6
 
Beachtrader's Avatar
Joined Nov 2008
Quote:
Originally Posted by advfntrader View Post
yes but with 1000 and using only 50p per point you could still feel comfortable. its about having enough margin to have a few losers and still feel OK
From a starting out point of view, for me it's a simple mathematical calculation:

1) Work out the markets you are going to trade and what the minimum per point is - say 50p

2) Depending on your chosen style of trading, work out your maximum stop position on a trade - for me with forex it's approx. 90 pips

3) Define your money management rules - how much you are prepared to lose per trade - in my case no more than 2%

Capital required to trade = 2,250

Assuming you've demo'ed the system then you should be able to combine this with an expectancy rate / metrics to see what sort of income this will produce.

All of the above is subject to the fact (as I've learnt) that the expectancy rate will go down when real money is at stake and also that the key is to be comfortable with your money management rules. In other words my system means the most I will ever lose by being wrong is 45 - can my account suffer a string of these losses (firstly) and (secondly) am I personally comfortable with losing this sum of money? If the answer to either of those question is 'no' then something is wrong!!
Beachtrader is offline   Reply With Quote
Thanks! The following members like this post: dbau
Old Apr 15, 2009, 11:47am   #7
 
Masquerade's Avatar
Joined Nov 2007
Any amount where you're not hugely over-leveraged really.

Depends what you want from trading. If you want it to be a full-time income 1k won't cut it. If you want a part-time income then you may not wish to put 30k in for example. Horses for courses..Some people on here have made tidy sums starting from 5p/pip so don't feel bad starting there.
Masquerade is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Account Size milesy Discretionary Trading 4 Mar 10, 2009 2:51pm
Psychology - 1) Size of account 2) Buy or Sell montmorencyt2w General Trading Chat 8 Nov 11, 2008 2:29pm
What size account to start with? harrymonk First Steps 40 Apr 21, 2008 3:01pm
Ratio between account size and bet size cshieldsx Spread Betting & CFDs 4 Aug 13, 2007 2:05pm
specifying account size in 2ki strategy testing Kanpo Trading Software 2 Oct 22, 2006 7:04pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)