Getting started plan

S2 - Steward - Resource Management capital management
1

Please feel free to evaluate and make any comments or suggestions.

I am just about ready to go live. I will be starting with a small account size of $500. I know in the beginning, because of account size, that I may have to take on more risk per trade/day than what the ideal risk management model on this site says. I will primarily be trading Boomerangs in the evening, maybe doing some evening news straddles if recommended in the news trading plan.

So, below is the plan I have come up with.

$500 account:

  1. Daily +/- P&L goal will be 10%
  2. Max # of trades per day will be 6
  3. P&L per trade goal will be $20 - $30(depending on strike selection and exit style)

If and when account reaches $1000:

  1. Daily +/- P&L goal will be 7.5%(I decided on this because $75 can easily be split up into 3 trades with my P&L per trade goal)
  2. Max # of trades per day will be 6
  3. P&L per trade goal will be $20 - $30(depending on strike selection and exit style)

If and when account reaches $2000:

  1. Revert to the 5%/6 trade risk management model of APEX investing

I feel fairly confident with the plan laid out above but have 1 question. If I hit the 6 trades for the day and I am flat or not yet reached the +/- P&L, is it ok to keep trading or do I simply walk away and get ready for the next trading day?

Any feedback is welcome and I thank you for it. Thank you.

John

2

I don’t have a 6 trade a day rule.

I just have a stop trading if down 6 net trades. Though I recommend only risking 5%/6

But you got a handle on that already

Reason is you can take that hit and be on to trade the next day and if you trade our systems it’s actually a bit challenging (knock on wood disclaimers etc…) down 6 net trades in a session.

3

Thanks Darrell, understood about the 6 “net” trades per day, up or down. I was thinking about it the wrong way.

Thanks, John

4

Note you may not have that luxury of 6 net per day with $500…

6 net up is not the rule - 6 net down is the rule

You may catch a big move and make your 5% in just 1 or 2 trades or you may have 16 trades with 11 up 5 down and hit 5% profit etc…

5

once again, thanks Darrell. Understood.