How to manage a trade

This is a discussion on How to manage a trade within the General Trading Chat forums, part of the Reception category; As the risk/reward decrease, should the %/trade increase or decrease?...

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Old May 21, 2009, 4:39am   #1
 
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How to manage a trade

As the risk/reward decrease, should the %/trade increase or decrease?

Last edited by billyhk; May 21, 2009 at 7:31am.
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Old May 21, 2009, 6:16am   #2
 
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your percentage of RISK to reward should not increase! And make sure you figure the R/R before entering the trade, not after

Last edited by ugly_dog1; May 21, 2009 at 6:04pm.
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Old May 21, 2009, 7:54am   #3
 
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Do now waste time on magic formulas. They won't help your trading at all, not even a little bit.
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Old May 21, 2009, 10:08am   #4
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Originally Posted by billyhk View Post
As the risk/reward decrease, should the %/trade increase or decrease?
The risk (entry-to-stop) alone should determine your trade size for any given trade. The amount you choose to risk per trade is up to you, but I would suggest keeping it the same for all trades and not exceeding 1%.

As for decreasing R:R nothing wrong with that if you're getting a higher W:L.

No magic in any of those forumlas, which is probably why they're useful.
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Old May 21, 2009, 10:48am   #5
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Originally Posted by billyhk View Post
As the risk/reward decrease, should the %/trade increase or decrease?
Just focus on risk you can take. If that is Ok rest will be OK too. No magic formulas there.
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Old May 21, 2009, 10:55am   #6
 
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In other words, study and practice until you become proficient at picking winning entries and limit your losses as much as possible. You must keep your mistakes as CHEAP as possible, everything else is peripheral. Some people will make you think this means using a slide rule and vernier calipers to calculate where your stop should be. These things will develop naturally as you progress. Anyone who has gone the DMA route and started with a limited amount of capital will understand exactly what I mean.
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