Simple's Green Room

[pennies2007]

Here's the best "rule of thumb" trading practice you could ever have Qui...

If you take trades and you're bored and don't really worry about watching the charts much afterwards while you're trade is running, then you're probably in at about the right percentage of risk level for you as an individual.

But if the trade makes your butt pucker enough to bite holes in your seat when the trade runs against you, then you're in too heavy.

Same with time frame selection preference...if you take the trade and you're willing to let it run to completion regardless of how long it takes, then you're comfortable with the time frame you're trading.

If you get exasperated and impatient with the trade and you're tired of waiting on it to get to your target, then you're trading the wrong time frame.

Simple as that...the easy solution is to find the risk factor and patience factor that is comfortable for you as an individual. It's different for everybody.