Position Size and Risk Management

In my career as a trader, I have Never seen anyone who applying the position size and risk management in correct size position and Stop Loss. Most of them just show the entry, technic, small equity gain large % ROI just want to make the others impressed with them. hahaha sound childish. In the long run, they Are just a trash or loser. Even some of them are famous or call genius from the Forum  or FB (Facebooking) lol does not apply this basic theory. I never make them as my inspiration because there are just famous in certain places. Not knowing of the world history itself. Is this guy you all ever want to follow? Use your brain. Don’t simply follow others because what they are doing, you want to do the same thing. Don't be idiotic. They just make you a loser again and again and again. Does not help at all.

Some of you might know this but the question is, how to put and Calculate exactly the position size and where exactly the Stop Loss should it be. Because, we often read and hear, no risk 2% bla bla bla bla bla.. If you are scalper mostly you will be wiped out in no time even using good money management. Seriously. But there is a way to avoid this. Maybe later I will be able to write about this.

I don’t want to give a specific answer whom have these questions. How to put and Calculate exactly the position size and where exactly the Stop Loss should it be.  Because it is your homework. And my advice and experienced is worth more than jewel and gold. Just kidding. Actually it depends on yourself. Your comfort level. And combine with the other strategy / method. If you carefully  observe on your chart. There is a specific place that price unable to get if you put it "there". But sometimes it can be hit also. Because we are just human. Nothing perfect.

Drawdown effects

Size of draw-down on initial capital    Percent gain to recover


                          5%                         5.3%
                         10%                       11.1%
                         15%                       17.6%
                         20%                       25.0%
                         25%                       33.3%
                         30%                       42.9%
                         40%                       66.7%
                         50%                       100 %
                         60%                       150 %
                         70%                       233 %
                         80%                       400 %
                         90%                      1000 %

 Everything you need to know is right there in Front of you.

- Jesse Livermore 

The most important rule of trading is to play good defense, Not great offense. - Paul Tudor Jones 

Invincibility lies in the defense the possibility of victory in the attack

To secure ourselves against defeat lies in our own hands, but the opportunity of defeating the enemy is provided by the enemy himself.

- Sun Tzu Art Of War

Here some good articles worth to read http://www.trade2win.com/articles/1476-position-sizing-approach-risk-management

Position Size and Risk Management are the more important thing that everyone should know to make money by trading for a living in the long run.

The above quotes is my inspiration people who already know by the history world itself. These people that you should make them as inpiration not the "trash". IMHO