Trading Online » money management

Stop Loss Placement

anna — Sun, 22 Feb 2009 13:31:53 +0000

Dear Anna, i am a small intraday trader. i want to ask a question, “where i have to set stop loss order”? in order to prevent more loss.

Stop Loss Money Management

anna — Sun, 22 Feb 2009 12:35:33 +0000

Anna, Thanks so much for this fantastic website, in particular the bit on money management. I am about to start trading and have taken all the advice to heart. One thing – the broker I am with offers guaranteed stop-loss orders at a premium, to prevent incurring losses should something ‘unforeseen’ happen. Could I ask you about your opinion on this? Would it be worth it? How often do such things happen? Thanks, and best of luck with your work! Heike

Risk & Money Management

anna — Sun, 22 Feb 2009 12:26:38 +0000

Hi Anna, I am Fernando from Sydney, Australia. I only started to get into the trading stuff. While I was researching on risk management I came across your site. Thank you and great stuff!! Congratulations!! My question is about the 1% risk per trade rule. In your examples you are not considering fees or taxes. However if I have a capital for trading of 50000$ each trade should be of 500$ but the broker alone charges 20$. I have researched and that is the lowest I could get. Therefore Every time I trade I do I am loosing 40$ (20$ to buy and 20$ to sell, more if I start shorting). Only to get back the fees I need to earn 10% per trade if I only risk 500$. Do you have any comments on that? Thank you for the help Regards.