[bygolly]

Limit your risk (this was attributed to a posting by the Elliott Wave group, however, I was not able to confirm)

If you risk 50% – you will wipe out as soon as you have 2 consecutive losing trades – 1 chance in 4

If you risk 25% – you will wipe out as soon as you have 4 consecutive losing trades – 1 chance in 16

If you risk 10% – you will wipe out as soon as you have 10 consecutive losing trades – 1 chance in 1024

If you risk 5% – you will wipe out as soon as you have 20 consecutive losing trades – 1 chance in 1,048,576 (about a million)

If you risk 2% – you will wipe out as soon as you have 50 consecutive losing trades – 1 chance in 1,125,899,906,842,620 or about a BILLION!

Somewhere between 2-5% is the maximum amount you can risk

The average bank trader or hedge fund only risks 1% to 1 ½ % of the account.

If you can’t be successful trading a micro account, don’t go up to a mini account. Don’t go up to a standard account if you can’t make a micro or mini account work.