Recent content by pirx

If I decide to start with a $2.000 investment, then my second investment should be $1.333, and the third $666?

:) Don't worry, I'll get it eventually ;) Your example for "scaling in" in stocks was superb and I've copied it to my money management sheet. See the attachment. But I wasn't sure if it's the same for currencies.

That's cool. But how do I scale in for my second, or even third position? :)

Yup, I too am going to trade one pair only - EUR/USD. Let's say that my first investment was 2% of my equity. And if I want to add another position, what do I do? Do I calculate again the 2% from the cash that is unused (my core equity), or do I add a smaller position this time?

Well, I also buy a smaller amount of stocks from companies, which I like, but currently they are experiencing troubles. My last such investment was made in TMTA (Transmeta). I don't have any stop loss set, because even if I loose all the money invested, I won't be heavily financially damaged...

I'm not in for the quick profits.

I will use daily timeframe and I will hold my position from 7 to 10 days.

Hi, Paul. But if we discard the volatility for now, are the above calculations correct? Should I take 2% of my core equity (core equity = starting balance - amount in open positions) for each trade than I plan to make?

Hi shadowninja. I thought I should risk 2% for each pair I want to invest in and if I had 4 simultaneous investments, my total account risk would be limited to 8%. I had this idea from reading this: Trading one currnecy pair will generate few entry signals. It would be better to diversify your...

Hello. I'm still new to forex, so please bare with me. 1st Newbie Question: When investing in stocks, a pretty standard money management practice is to divide your starting balance into equal units (for example, $10.000 : 5 = $2.500 per investment) and risk a desired percentage from each unit...

Thanks! This makes sense now. I've read a few articles about scaling in and scaling out, but none showed any mathematical examples. This helps. :)

That is exactly what I'm going to do, as described in Example B. But as I have calculated, I can apply 7% risk on each of my four $2.500 investments to reach a 7% aggregate risk on the starting $10.000. Did I miscalculated something?

Hi, tomorton. I don't really trade stocks, I hold them for 3 months on average. I invest only in stocks that are at or above $80 and are reaching new 52wk highs. There has to be a nice trend too. Something like MON or MOS, for example. I never used to scale in and scale out of positions, but if...

tomorton, thank you for the explanation. Because my stock investing account is somewhat below $20.000, I will divide it to 5 equal units and risk about 7% from each unit. I won't risk more, even if TA would suggest so, because I have no (psychological) problem entering again at a higher price...

Forex Money Management Calculator This is for Forex. Does Your Equity mean my whole trading account or just the amount I wish to risk for a trade?