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Old 08-05-2008, 08:01 PM
jason jason is offline
Junior Member
 
Join Date: Aug 2008
Location: Beijing
Posts: 23
Default Money management - general question

Hi David,

I've been watching your video series on money management (which are great by the way) and I have a question:

You mention that as a general rule you should try not to risk more than 2% of your capital on each trade. If I open a trade which has a stop loss at 2% of my initial capital does that mean i can't open anymore trades? Or I can open as many trades as I want but make sure they each have a stop loss of no greater than 2%?

I know that say two trades add up to 4%, but if you're trading different currency pairs then the risk is spread wider.
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