http://www.etftrends.com/forum/ Keeping a grip on exchange-traded funds (ETFs) en Sat, 26 May 2012 14:50:32 +0000 http://www.etftrends.com/forum/topic/moneyrisk-management#post-353 Sun, 21 Feb 2010 08:34:28 +0000 Donato 353@http://www.etftrends.com/forum/ <p>Hi John . . .<br /> This has been my favorite subject of study lately. And though it is simple, it can sound complicted when trying to explain it. Most people will tell you a percentage, like 1%, 2%, or 3%. But there is another way to look at it . . .</p> <p>How many dollars are you willing to lose on any given trade? It can be any number, so long as you are comfortable with it. It could be $50, $500, $5000, or any other number.</p> <p>Then you pick your stop. After you know how much you are willing to lose, and what the stop is, then you can figure out how many shares to buy. It can really be just that simple.</p> <p>I'm beginning to scale in and out of trades now, so that can keep my risk quite low, while accumulating a larger position when things go the correct direction.</p> <p>Good Luck! </p> http://www.etftrends.com/forum/topic/moneyrisk-management#post-350 Sun, 21 Feb 2010 06:05:30 +0000 Fifthtry 350@http://www.etftrends.com/forum/ <p>I'm new, so perhaps I've just missed it, but I don't see on this Forum, or Tom's book, discussion of how much of one's capital to risk on each trade. Any suggestions where to find info on that here? Thanks.</p> <p>John </p>