Hi all,
I was looking through the Bunnygirl system yesterday (Stockwets updated version) and I'm still abit confused about a few things on money management:
it says to use no more than 2% of your account for each trade. Does this mean when buying 4 lots the total would be 2%? or Is each lot 2%, if so does this figure change after buying the first lot? Eg:
Account size: $1000
2% : $20
First lot: 2% of 1000 = $20
Second lot: 2% of 980 = $19.6
Third lot: 2% of 960 = $19.2..............and so on.
Also I dont really understand the quote at the end by Bunnygirl on position sizing. Could anyone give me some more examples of how this works?
thanks in advance,
Arcane.
I was looking through the Bunnygirl system yesterday (Stockwets updated version) and I'm still abit confused about a few things on money management:
it says to use no more than 2% of your account for each trade. Does this mean when buying 4 lots the total would be 2%? or Is each lot 2%, if so does this figure change after buying the first lot? Eg:
Account size: $1000
2% : $20
First lot: 2% of 1000 = $20
Second lot: 2% of 980 = $19.6
Third lot: 2% of 960 = $19.2..............and so on.
Also I dont really understand the quote at the end by Bunnygirl on position sizing. Could anyone give me some more examples of how this works?
thanks in advance,
Arcane.