Senior scalpers and day traders , plz comment on my money&risk management system .

Discussion in 'Risk & Money Management' started by hedgefudge13, Jan 20, 2015.

  1. vijayanscbe

    vijayanscbe Well-Known Member

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    Re: Senior scalpers and day traders , plz comment on my money&risk management system

    As I said MM and RM are subjective terms , I give my subjective understandings.

    Money Management

    If you fix your 1% risk per trade, 3% per day,10% per month etc . Then we consider as trading model/system, as Money Management.

    Risk Management

    The other risks which are out side the trading model/system as Risk Management.

    Risks Outside the Trading Models/System
    1) Power Failure.
    2) PC Breakdown.
    3) Internet Failures.
    3) Sudden large spike/crash which failed execute your SL order.
    4) Trading Platform Issues.
    5) Broker Goes Burst. ETC..etc..

    When broker goes burst you can claim max 15 lakhs. That too may takes min 6 months - max (god knows).
    http://theindianstockbrokers.com/unicon-securities-complaints-what-if-your-broker-goes-burst/

    I my self stuck with Alpari UK insolvency, got refund after 8 months.
    I had not any exposer while that crash happened, but many traders who had exposer with Swiss franc loss more than what they had in their account. For example +$100000 account may turned into -$300000 lakh and have to pay the difference else have to face the legal actions.

    Forex Disclaimer that states: FX and CFDs are leveraged products that carry a high level of risk to your capital, with the possibility of losing significantly more than your initial investment.

    From this experience I had diversified the Trading Amount with two brokers and will keep only margin amount plus buffer, rest in bank.
     
    TRADERSM likes this.

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