Basic money management issues adopted from Michael R. Bryant
1. Fixed number of Shares. The same number of contracts or shares is applied to each trade; e.g.,100 or 50 shares per trade( or) 100 or 50 shares per company
2. Fixed amount per contract/company. A fixed amount of account equity is needed for each contract or share; e.g., Rs.10000 for one company
3. Fixed fractional (also known as fixed risk). The number of contracts or shares is determined so that each trade risks a specified fraction of the account equity; e.g., 2% of account equity is risked on each trade.
4. Generalized ratio. This is a generalized form of fixed ratio, which includes an optional parameter to change the rate of increase in the number of contracts or shares with increasing profits."
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