domingo, 1 de junio de 2008

lower trading size: bad idea

Usual money management rule says : "decrease trading size after losses."
I am not sure this is optimal: you will need many more winning trades to recover the losses.
After the 80 pips loss and though my capital was not hurt, I traded lower and earned back 40 pips in one day without taking much risk, on the contrary.
Only problem is that the capital has not increased much.
That's why choosing your trade size is important: even after losses, you have to continue with the same value. Unless of course your trading method is definetely wrong, in that case you would go down even faster.

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