Bet Risk Size

iq200

Well-known member
347 13
Hi,

I am about to start spread betting with D4F very soon and plan
initially to start very small (1 £ pp). I was just interested to hear
how much risk other people are taking. So what size bet are you
people placing?

Regards,

Imran
 

Lambchops

Active member
126 0
Hi Imran, I am dealing with D4F and I am still on a £1 a point at the moment. Don`t increase your bet until you are profitable at what you are trading.
 

Miki

Member
98 1
If I was a betting man I would wager that your capital is far more likely to decrease before you bet is likely to increase.
:)
 

Agincourt

Junior member
40 0
I started three months ago with D4F and found that at £1 it was just impossible not to lose money. The market has to move too far too make it worthwhile. I bet £4 now and am much more likely to win. At £1 a point you have to hold on too long and alost inevitably the market moves against you and then you hang on hoping for it to go back - which it doesn't.

The secret lies in the stops and cutting losses in time.
 

iq200

Well-known member
347 13
The reason I am using a small bet of £1 is not to make money
but to get market trading experience. When I feel I am getting
somewhere and more confident, then I will increase the bet
size.


Imran
 

warm_machine

Member
70 0
Imran, I suggest you start with whatever feels comfortable, but watch the instrument you are trading (and all the goes with it) rather than your balance - whether or not you are in profit should have no influence on your trading decisions, because if it's about the money then it's highly likely you will come unstuck. It's important that you pick up good habits at this early stage. Best of luck.
 

tomorton

Legendary member
8,126 1,209
Hi ImranQ

I am still on £1 a bet after 3 moinths, reason being I can't find my style for spreabetting, so as said above, staying at £1 until consistently profitable.

When you progress to bigger stakes (and IF I ever do) you might think about the 1% rule - this is that whatever stop-loss you use it shouild not take away more than 1% of your total trading capital. e.g. if your trading capital is a round £10,000 to make it simpler, you would not want to lose more than £100 on any one position. If you're trading an index and you determine not to let the position go more than 20 points against you, that would suggest your max bet size would be £5, so that your max loss would still be 1% of your £10,000.

1% is a figure commonly used. When you get more consistent, you might venture to up it somewhat, but don't lose sight of the ground, it can be a long fall.

Good luck.
 

darrenf

Well-known member
481 3
Excellent post Tomorton. The key is determining the maximum loss before entering a trade by working out where to position your stop and how many pints away from your entry price this is.
Then, what % of your trading capital you want to risk, divided by number of points gives stake size. You may find on some markets this is £1pp on some others it may be £5pp.

1% is often quoted by pro traders and some talk of up to 5%.
1% is probably unrealistic for small accounts as even £1pp can take you over 1% in certain markets.

Find a % of capital you are comfortable risking per trade and take it from there. The lower this figure is, the longer you will stay around and the more likely you are to be successful longer term. The downside is, you ain't going to get rich overnight! But hey, that life! You could get rich over the longer term.
 

darrenf

Well-known member
481 3
PS

"Pints" in the first para of my previous post should read "points".

Yes, I know I could have edited it but I thought I'd leave it in for "comedy effect".

And no, haven't had any pints, not at this time in the morning. Come to think of it, haven't made many points either this last couple of weeks. Must brush up my skills (trading not drinking)
 

oatman

Senior member
2,879 22
Pints is another way of calculating your exposure.....an international currency :cheesy:
 

saingrow

Newbie
3 0
why use real money while you're testing you system?

undefinedundefinedundefined

:LOL:
Hi Imran

Why test your trading with real money especially spread betting.

Tradindex is easy to use .

It has a simulation set up you can practice all you want without losing a penny.

I recommend it for any one first trying spread betting.

Spread on ftse100 daily is 4

I've tried for a fortnight now every day .

Glad I wasn't playing for real yet I'm learning a lot and getting better but I only use Ftse 100 and sp500 dailies

Good luck

Saingrow
 
Last edited:

minx

Well-known member
328 10
Dont forget that betting £1 on vodafone is a lot less risky than £1 on Carnival point for point carnival is going to fly about the place while VOD doesn't move........ therefore bigger bets on the lower priced issues adn more on the higher priced ones, otherwise you might end up with very skewed results at the end of oyur testing period.
I realise this is similar to the 1%-5% post below but with SBing the min stake is usually £1 so you mightn't be able to put this into practise.
Finspreads.com do a trading academy where you can bet 1p a point whilst your learning...... might well be worth looking into this until you know what your doing...........keep your tuition costs to a minimum :p
 
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