money managament

kostis

Newbie
1 0
i have not yet started trading but i have been observing the markets and the news for quiet a long time, and i am considering giving it a try but i have yet to strait some things up before i get in to it..

considering a situation in which you try to scalp a currency in trades around .25 of the daily Average True Range and you want to have a 1:1 risk reward ratio and the risk you take must always be a constant percent of your bankroll. what is the appropriate percent of your bankroll you are willing to risk per trade?? obviously this is related to the volume of trades you are willing to take per day and as a result to the amount of money you are willing to risk per day.. approximately how much is a realistic volume one should have and relative to the volume how much should you risk of your bankroll in an individual trade?? for example: if you are willing to risk 5% of your bankroll in a day how much should you risk in each move and thus how many moves should you expect to make. ( obviously, no strategy gives you a constant amount of signals per day , but on long terms you could speculate on an expected volume per day) (or you could consider a situation in which you use your strategy in more than one currency and thus you can increase your volume)
 
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