How would you manage 100k?

[GladiatorX]

I've noticed on these forums that most people are using relatively small amounts of money to trade; Therefore focusing largely on leveraged products and trying to win from directional trades, using a stop loss as an exit in the case their analysis proved to be incorrect.
Out of interest and the sake of discussion, as in general such talk seems under-discussed on the internet in general! With most traders trying to turn £1,000 into 1 million, what strategies or styles would you employ to manage larger amounts of money than per usual.

As a starting point: £100,000 however feel free to discuss larger amount

Would you employ different strategies or stick to your current methodologies?

 

[barjon]

slippage,slippage, slippage

 

[N Rothschild]

slippage? on what?

 

[JohnsonG]

Well I probably would not risk all 100,000. The market is very tricky unless your a trained gladiator in the forex world that 100,000 will be long gone. Unless I was some 30 years trained trader who had experience in trading big amounts, than I would be able to do something with that 100,000
I would take out 10,000 to trade and try to make profit, but not more.

 

[Glenn]

The shorter your timeframe and the larger the trade, the more likely it is that you will have to wait to get filled. Try scalping a few thousand liquid $60 stocks with one entry and one exit and see what happens.

Imho, Daytrading is for income and Position trading is for capital growth, and Capital growth means much longer term positions entered either all in one go or as a piecemeal build-up. The issue of slippage applies, but when you are anticipating being in the market longer, and for substantial profit, it is just part of the cost of doing business.
As for strategies and methodologies, I use the same techniques for everything, but different timeframes.

Glenn

 

[GladiatorX]

Well I probably would not risk all 100,000. The market is very tricky unless your a trained gladiator in the forex world that 100,000 will be long gone. Unless I was some 30 years trained trader who had experience in trading big amounts, than I would be able to do something with that 100,000
I would take out 10,000 to trade and try to make profit, but not more.

Surely you wouldn't trade 10k in the same way as 100k, in my mind that would be ridiculous... I would employ far different strategies, therefore reverting to a 10k account would be pointless given the potential benefits of having the 100k, larger account.

 

[trader-x666]

Over my time i have traded huge accounts for hedge funds or private investors and my advice would be do nothing different. Keep your risk down, and reward as high as possible. Cut your losses quick, let your profits run. Simple but effective.

 

[GladiatorX]

Over my time i have traded huge accounts for hedge funds or private investors and my advice would be do nothing different. Keep your risk down, and reward as high as possible. Cut your losses quick, let your profits run. Simple but effective.

Saying 'Cut your losses quick and let your profits run' is a like saying 'Enter winning trades and don't enter losing trades'

It has no REAL meaning or application; its just generic market wisedom with no substance.

Doesn't mean anything... Its just words with no application or real meaning.

I can tell by the way your promoting yourself, and the fact your sharing your 'secrets' that your probably lieing and there is more to it than 'sharing'; In some way your trying to profit; Not neccesarily monetarily but probably.

As the Number 1# Hypocrite on this website, i can tell you to **** OFF ... Every post you tell people you either have a chat room, manage huge funds etc etc or are giving away your secrets... Your behaviour is obvious, in the end you will be asking to manage peoples funds OR sell them some of your stuff...

Its just obvious, and i'm a ****ing idiot.

 

[shadowninja]

Might wanna amend your post to be less offensive while maintaining your position...

Anyway, cutting losses and letting profits run means something very specific. It's the opposite of what newbies do for a start. We've all been there, so a little reminder. A newbie (who has no idea about market direction) will watch a small loss become a bigger loss as they keep moving the stop back. Eventually, they cannot take the pain and, so having let the losses run, close out. Then when they see a little profit on the next trade, they'll think "I shouldn't be greedy" or "Any profit's good" or "It'll reverse any minute and I don't want yet another loss" and they'll close for a tiny amount of profit, being a small fraction of their nice fat loss.

So when you're in a losing position and know you're wrong (that comes from experience), accept it, take a small loss, then when you see profit, don't close immediately, but at the point when you think the market has moved all it can in your favour (again, this comes from experience and depends on the timeframe you trade in).

But you knew this already.

As for £100k accounts, use the 1% rule. And master your emotions. And kill your ego. Or else you'll see £50k losses and £100 wins. This is exactly why IG display profit and loss in £s rather than pips. A crap trader is most likely so be lured in to close a position that is £500 in profit when in reality it's just 10 pips on EUR/USD. And they will most likely let a loss run and run.

 

[Bloodhound]

Surely you wouldn't trade 10k in the same way as 100k, in my mind that would be ridiculous... I would employ far different strategies, therefore reverting to a 10k account would be pointless given the potential benefits of having the 100k, larger account.

Maybe I'm missing the point of what you are saying but why would you not use the same strategy, set-ups, risk / money management for managing a £100k versus how you would manage a £10k account? Surely one is trying to trade with a level of emotional detachment whereby the money shouldn't matter? It should all come down to the risk management rules one has in place and strict adherence to these rules.

 

[bangkokgee]

simple

i would use 2% on each trade,if it lost or won,and then use 2% on the next trade,KISS,WHY TRY TO BE CLEVER:-0

 

[Dinos]

Agree bangkokgee, KISS, I use a set up (from years of painstaking hardwork) to have a trading plan that works for me. It delieves the pips I require, limits the losses I experience. Whether or not I were trading a £1k, £100K or £1m account, the system would be the same, it works for me, so why should I trade differently simply because I have a larger capital account, just got to stick to the plan, doesn't make sense to do anything other to . Just my 2 penneth fwiw.

 

[ffsear]

Max risk would be £1,500 any one trade.

Position size = Pips risked / 1,500

 

[pedro01]

10% for day trading. The rest across various asset classes:

Asian property, High Yield Bond, Hedge fund (MAN AHL), Gold, agriculture, energy, Eastern Europe.

Right now, trying to mostly avoid the risks associated with a long term dollar devaluation.

 

[Rossini]

You can do all that with just 100k. That's diversification for you ;-)

 

[pedro01]

You can do all that with just 100k. That's diversification for you ;-)

LOL - I didn't know there was an upper limit !

I thought it was what would you do with > 100K.

Take off the day trading acocunt & the hedge fund. Do the rest with ETFs

 

[Technically Fundamental]

I'd get a 10k loan then buy a stake in quantum fund

 

[Mr. Charts]

Hey GladiatorX,
Simple question.
Are you HaloTrader re-born?

 

[Technically Fundamental]

Are you still Methuselah Mr Charts?

 

[GladiatorX]

Hey GladiatorX,
Simple question.
Are you HaloTrader re-born?

Everyone keeps calling me HaloTrader so i don't see why you can't either!

I don't really understand why but Its all good.