Guaranteed Profits OR Big Profits?

Beginner Questions
1

Hey so i stumbled across a neat little video last night regarding trading and just want different opinions on it. Just before i get into detail i know everyone’s answer is going to be different as it depends on your personality

So to keep it nice and short:

You have 4 weeks in a month

Week 1
Week 2
Week 3
Week 4

Lets say the first week you are up 3%
Second week you are up 5%

So now you are beginning the third week, in total you are currently up 8%
You normally risk about 1% each trade
Make 2 trades per week

So that means you have 4 more trades for the rest of the month.

Do you either
1- Trade like you normally do, risking 1 % each trade
2- Increase your position sizing to 2% since you are already up 8% and if you lose all of your remaining trades you still end up being even with no losses in the month
3- Lock in 6 %, and drop your risk per trade to 0.5% so that EVEN if you lose all 4 remaining trades you can walk away from that month a winner of 6%

Just curious on how people would adjust or NOT adjust.

Me personally, i know i like to gamble and can handle losses.
What would you do???

2

This one. (Not always 1% exactly, but closest to this one, anyway. Some of mine are 0.5%.)

My own trading’s all about risk management, not profit maximisation.

[I]For me[/I], there would be no logic at all in allowing the position-sizing for any trade to be determined by the results of previous trades: I want it to be determined in a mathematical way, in accordance with my lovingly-crafted risk management parameters. :slight_smile:

Like anyone, I can never predict the outcome of any individual trade with certainty; but I can predict the [I]collective[/I] outcomes of my next 300 trades to the nearest 2%, with over 95% certainty, given constant position-sizing. I can’t control or influence how long those 300 trades will take to materialise, at all, of course, because that depends on how frequently my set-ups arise, but I don’t mind that, as long as I know that they’ll arrive soon enough, and can tell what my income will be over 300 trades (even if the speed of earning it varies a little.)

Fair enough, of course. I’m different: I hate to gamble and am [I]very[/I] averse to collective losses, but given constant position-sizing, individual losses don’t bother me [U]at all[/U], given everything I’ve mentioned above. I’d hate a losing run at higher stakes, though. Little Miss Conservative, here … :8:

3

hey thanks for the reply. I really like the fact that you took the time to explain everything. Cheers!

4

I would trade like I normally do. When I get greedy I make mistakes, so I prefer to go slow and steady and follow my strategy and my set habits.

5

Always follow rules and strategy which we have created for our trading style. Being greedy can cause loss in trading.

6

One should aim for guaranteed profits, not big profits, as it is the main cause of many traders failing in forex as they aim to get rich over night.

8

I would like to get sure profit may be it would low but I will avoid high profits which are using highest risk and amount from my capital . As a medium trader I can not afford high risk . My aim is to get small and regular profits.