Click on the quotation mark button of a post to insert the quote.brimson25 wrote: ↑Tue Mar 06, 2018 6:06 pmThere's a comment above from Derek, which has got me thinking. (Sorry, can't work out how to do the quotes thing).
My trading bank is £500, not £25. So, suddenly I wonder in trying to be really disciplined, I'm actually being way too nitty? I'm currently using £5 stakes, so obviously 1% of my bank. I'm thinking I'd feel ok with a maximum liability on any one market of around 4%. I hate losing anything, as you say, because it's a mark of something going wrong, I'd like to build aggressively, but I don't want to wreck my confidence. I guess that's an age-old trade-off.
I had hoped to find rules about best practice on this stuff, but but people tend to be very delphic and enigmatic about their banks, and their bankroll management. (Or perhaps I'm looking in the wrong places). And perhaps there are no rules really, for what is individual risk tolerance.
Cheers for all your comments today all, much appreciated.
The percentage of your bank that you stake or risk is largely down to your style of trading and level of risk, and it's certainly better to be cautious than over stake. The downside of under staking is that you may not be making the best use of your resources. I reckon if you're consistently profitable for a period of time and the percentage of your bank at risk at any one time is small, it may be worth considering how well you could do with slightly higher stakes, percentage wise.