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Old 12-29-2005, 03:31 PM
Dan Mezick Dan Mezick is offline
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Join Date: Jun 2004
Location: Foxwoods area
Posts: 297
Default Re: I forgot how to play poker.

Sizing bets per trade, as a function of portfolio equity size, is a very common risk control policy and practice used by almost all traders.

Trading and poker are both games where you are supposed to cut losses-- and let winners ride.

If you dont decrease your size when you are losing, you are asking for quite a bit more psychological stress than you may be currently experiencing.

Increasing size as equity grows is the rewarding flip side of following this type of risk-management rule.
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