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| Discuss beginner question at the Risk & Money Management within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Im just starting to research trading(ie. reading ALOT) and had a question. the main focus ... |
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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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