pound per point

comino

Junior member
29 0
If i have a bank of1000 for SB what level of entry would best be used 1 2 or 3 pound per point.?using the daily dow .
Is it a good idea to add to an initial stake if the trade is going well?
What views are there on adding on to a losing trade if the trade shows indication of returning to your entry?
 

ChartMan

Legendary member
5,580 46
50p /point and a 20 point stop loss is a good start for 1 min charts giving 1% risk per trade nominal. Never add to a loser... jump off and wait for the next bus while you collect your thoughts. Adding to a winner needs just as much care and skill !
 

comino

Junior member
29 0
i think thats were i've been going wrong then,thanks for your reply,i think i need to be more disciplined on my money managment with this bank i've sometimes go up to 3 pound a point.
 

ChartMan

Legendary member
5,580 46
That'll be painfull when the losing trades come then. :( Patience my man, will be rewarded. Little and often will pay in the end.
 

comino

Junior member
29 0
yes i made 200 point profit a few months ago out 20 trades but managed to give it back quickly in a couple of trades,but i think i'm learning slowly.Question do you think that certain market conditions suit different characters,myself i think i'm more of a bear than a bull and have found the past year very difficult,it seems i have more confident in a bear than a bull market i know one reason it moves quicker on the way down is there other reasons for this ? should a trader be adaptable in all market conditions?
Another question is that certain technical analysis pattern tend to differ in different market conditions.Is this due to more people using technical analysis and they become unreliable?
I appreciate your reply Thanks
 

donaldduke

Experienced member
1,665 257
50p youll have to use finspreads for that.I think most
others have 1pound minimum bet.

If you have a high probability system, over 70% winners
you could do 2 pound a point (with a 20point stop) with your
account size. But as a begginer youll be making mistakes so it
best to keep it small.
 

donaldduke

Experienced member
1,665 257
comino,

The market has a habit of mutating just when you think
youve got it sussed. You get used to buying dips or selling
rallies and then market doesnt bounce but keep going down (or up).

Likewise when you get used to buying breakouts and the
market always follows through on these breaks out, after a
while the market goes back to getting choppy again.

It would seem that after a while people get so used to buying
dips or buying breaks outs that no one else is left to buy afterwards and the market doesnt follow through.

Then the market goes back to being choppy and whole process
repeats it self.

The same with Technical indicators they work sometimes then
they stop working then they start working again.

In Market Wizards, Ed Seykota says that in 1980 he had
a really bad time because the market changed and he kept
trying to buy dips but the market would just keep going down.
(And he had been trading for about 10 years then).

As a trader you either must adapt or you could just keep
trading one way and get smaller (keep reducing your pounds per
point) or stop during losing streaks and wait for your type of
market to return.
 
 
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