Replies to post #49907 on Simple's Green Room

[pennies2007]

If I had 1k total in the account, I would go in for 5k on EU for .50 a pip.

That would put $100 on the line up front which is 10% of the total money in my account. That would be for the first trade. Then, I would set up two additional orders for 2.5k at 100 pip intervals away from my first entry at .25 a pip to help average down. If both of those orders got hit, I would then be on the line for 20% of my account. In normal times, that seems to work pretty well since we usually get in pretty close to top or bottom.

But what I'm seeing is that in those situations where we get these crazy swings like this, that can still knock a decent sized hole in an account. So, what I'm going to do is drop the percentage I put in on each trade. Each trade will only take 2% of the total money in the account.

The pip value will be considerably less but I can stack up quite a few of the trade entries along the way with no problem and no real danger to the account as a whole.

Less bottom line money per trade but a much greater degree of safety for the account.