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beginner question

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Risk & Money Management Discuss risk and money management techniques and methods to protect your trading capital.


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Old 23rd August 2005, 09:28 AM
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Default beginner question

Im just starting to research trading(ie. reading ALOT) and had a question. the main focus of my reading has been money/risk management and technical analysis. Everything i read says to never put more then 20% of your money in one trade; and although i have not started trading and wont be for a while I will still be starting out with a fairly small amount of money, around 1000 dollars. with such a low amount of starting money there would have to be a fairly large jump to clear commision costs. My question is with a tool like the "trailing stop" with a fairly narrow percent(say 4-6%) would it still be unwise to use 100% so the gains would still be enough to cover commisions and the loses would never be more then 4-6%? of course this isn't my life savings and although i would like to not lose it all, i would not have to much of a problem with it.
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