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Thursday, 29 March 2012

How much is enough?

Further to the last post, I received two emails asking about size of starting bank. Good question.
In the beginning, I allocated X amount to start my trading journey with and tried to work on the basis of adding 3% per day to double up within a month. All a bit pointless really, when you consider I had to learn to trade first.  Often we read about traders who see 5% of bank as an acceptable loss on a trade but what percentage of bank is being used to put that 5% in jeopardy?
I don't carry a large trading bank, there doesn't seem much point having more in your account than you need to trade with, unless you are expecting to have numerous losses, which is a whole other psychology question.
My month begins with X, ends with Y and the difference is withdrawn. I work to set stakes and liabilities so, at the start of the month, 90% of my trades will have the vast majority of my trading bank in the market. I do have reserves should I ever need to reload the bank but otherwise what's in there will do.
If you allocate a grand to start trading with but have no intention of using all of it, put back in your bank account whatever you don't expect to use. There may not be much but it will get some interest, plus it will ensure there is no temptation to over trade, over stake or give rise to thoughts such as "It's okay, I've still £X00 left...".

The San Siro was alive last night and, though a 0-0, it was still a very good game to watch. I had hoped to be laying HT 0-0 but after twenty minutes there had been just 3 SoT and a goal did not look forthcoming. I ended up dutching 0-0, 1-0 & 0-1 at HT. So, a nice green in the end.
None of tonight's fodder stands out. In-play for me.

Very grateful for the music suggestions, please keep them coming. Today I shall be mostly listening to...

The Tubeway Army - Replicas
The Best of Little Milton
Stereo MC's - Connected
The Buzzcocks - What do I get?
Springsteen - Darkness on the edge of town
Brainfreeze Breaks - DJ Shadow

Whatever you trade, stay green.

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