5 replies to this topic

[.Blizzard]

13 point loss on ES My worst trade since early 2006

[IndexTrader]

Thanks for posting. Not easy to take a loss on a public board. You know, most of the traders here don't lose. I got a feeling you're going to get it back....just do what you know how to do. IT

[.Blizzard]

Thanks for posting. Not easy to take a loss on a public board. You know, most of the traders here don't lose. I got a feeling you're going to get it back....just do what you know how to do.

IT

Thank you for the kind words

The indices are still showing bearish divergences....so we may fall any moment

but, I don't want to break my trading rules

Bad timing

[maineman]

Sorry for your loss, but it brings up one of the greatest of all trading questions.... How do you plan for/evaluate/assess risk? How many traders have precise rules for position size and stop loss parameters clearly written out for each trade? My guess is that those who do are the ones who survive. Its when one "jiggles" the stops or makes it up as one goes along that one runs into trouble. Here's a good question, for instance. Say you have a 50,000 dollar trading portfolio. How many S&P e-mini contacts would you trade at one time? How many points are you willing to risk per position? I'd be interested to hear from other traders? mm

[jjc]

13 point loss on ES

My worst trade since early 2006

Kudos, for posting your exit.

So what is the next trade!

[IndexTrader]

Sorry for your loss, but it brings up one of the greatest of all trading questions....
How do you plan for/evaluate/assess risk?

How many traders have precise rules for position size and stop loss parameters clearly written out for each trade?

My guess is that those who do are the ones who survive. Its when one "jiggles" the stops or makes it up as one goes along that one runs into trouble.

Here's a good question, for instance.
Say you have a 50,000 dollar trading portfolio.
How many S&P e-mini contacts would you trade at one time?
How many points are you willing to risk per position?

I'd be interested to hear from other traders?

mm

I think the answer is "it depends". For an overnight type of trade I'm usually not willing to risk more than 2% or so of the account. That would be $1000 on your hypothetical account. I also like to use fairly wide stops, like 20 points for instance, which would then restrict me to 1 contract. I also don't like to put all my money in at once...so if I may only employ 1/3-1/2 at any one time.

In practice, I generally will trade about $20K per contract. I don't have all my money in the account. And too, part of it depends on how risky I view the particular trade.

Day trading I'm willing to get more aggressive than that....but I'm not a "leverage" junkie anymore...too old for that.

IT