In one hundred, is lonely
I'm a conservative trader -- I'm only using about a third of the leverage I used to. I'm more risk-averse than I was decades ago. The leverage of each trade depends on my confidence and the risk implied by the breakout signal.
Factor Trading does not expect to turn $100,000 into
1M as quickly as possible. My goal is to maintain a double-digit return every year without major movements in my money. I reduce the size of my opening when things go wrong. On the contrary, I will increase the size of the opening. I know the old Las Vegas gambler would say I should have done the opposite -- leveraged up when I lost and leveraged down when I gained.The factor Trading scheme uses conservative leverage. Many readers were surprised. Instead, I'm thinking of "units" of trading capital, each of which is $100,000. Leverage is how many contracts are traded per $100,000.
For example, by going long or short half a lot per unit, I mean trading one lot for every $200,000. When I trade forex, WHEN I say I short £35,000 per dollar per unit of capital, I mean £35,000 for every $100,000.
If I can make a profit of 10 to 15 percent in the next five months, I'll be really happy. On the other hand, if the trend doesn't cooperate, or I execute the plan badly, I try to keep my capital intact.
From the time I started journaling, I found that if I kept my distance from the market, I did well. On the other hand, if I want to place an intraday order based on real-time moves, I tend to overthink it.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.