say im dumping 100k USD… into forex or futures… they say 1% thats like what 1000 bucks… ? do i risk 1k a trade with 3 NQ contracts or use minis… i wanna do this right… but im mad i dont have a lambo…
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Yes, you risk 1K per trade IF your trading model presents itself. You should be risking the 1K when you have high probability conditions.
Please read “Trading in the Zone” by Mark Douglas, as you need to ensure you have an understanding of your psychology before trading with that much money.
Your aim shouldn’t be to gamble the money for profit, rather you need to be able to produce consistency and do it 10k times over.
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Did you try setting up stop losses to manage risk better?
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if you do it correct you can get almbo oneday
Who says 1%?
Well, yes, ok, a lot of people do say 1%, but you know what the consensus of opinion is like, in trading? 1% is really a very big position size.
People posting in forums (very few are profitable traders!) might recommend 1%.
If you ask people you know to be trading profitably, you’ll usually be told 0.3%, sometimes 0.5%, depending on the win-rate and R:R.
1 lot of e-mini NQ (“NQ”) moves at $20 per point, and it can swing through 50 points amazingly quickly (as we’ve seen quite a few times, even just in this quiet January week!).
So trading 1 lot of NQ intending to risk only $1,000 per trade is really terribly adventurous, even if you’re comfortably using a position size of 1% of the account (which more people wouldn’t be).
I suggest that a sensible position size for a $1,000-risk parameter would be something much more like 4 microlots (4 x “MNQ”).
Don’t let the fact MNQ is only $0.50 per tick per lot fool you: it swings around like a ■■■■■ and it’s really wild, wild trading!
I suggest maybe looking at ES (or MES) instead. ES is $12.50 per tick instead of NQ’s $5 per tick, but it’s miles safer and easier to trade. No comparison at all!
If you’re doing “Combines” and stuff like this (which you mentioned in another thread), it’s well worth knowing that most people who fail actually fail through having a position size that’s much too big.
If you have an edge, you can get there slowly and safely without blowing the account or falling foul of the rules, that way (and of course if you don’t really have an edge, then it makes no sense to pay Topstep anyway!!).
Don’t worry about it. They don’t go over speedbumps well, anyway.
Their use in trading is mostly for people to hire one for the day to take photos of themselves sitting in it, and put the photos on their website or on their Youtube videos so they can look successful and sell you a load of old ■■■■■■■■ . The forex vending business is profitable for a lot more people than the forex trading business, and a Lambo is the number 1 essential prop!!