In this post:
- What type of trader is Neil?
- What is Neil’s trading style?
- How does Neil manage his account and position sizing?
Neil is a conservative trader, who maintains the style of trading small, and risking small, so you can trade often and stay in the game for a long time. While he also trades futures, and by their very nature are high leveraged products, he still trades them in a very defined, conservative manner. This trading style guides him when he decides which strategies to use on the setups he finds. What kind of trader are you? Neil is strictly a technical trader, using precise levels and sticking with his plan in a very self-disciplined manner. He loves pullbacks and conservative entry zones, and prefers always entering as close as he can to his stop zone. This ensures his risk is always relatively small, and he is never buying the highs or selling the lows. Neil uses a combination of swing options and stock strategies to achieve his goals of steady account growth over time. While many consider futures to be a risky endeavor, he trades them in a very defined risk way, always entering with strict technical setups that include precise entry and exit points. He always strives to limit his risk as much as possible.
Don’t forget – the relative risk of a strategy is also coupled with the position size you use when you place it, which should also reflect appropriately on your account size.
Risk Management at a Glance
Trading Style: Conservative Futures Day Trader +Options/Stock Swing Trader – Directional + Income trades
Account Goals: Neil likes to think of profit in terms of profit per trade, relative to risk, versus per year. With favorable risk/reward scenarios and specific stop parameters, he doesn’t have to risk much to make a good return on his money.
Overall Acceptable/Recommended Account Risk: Neil manages his account and position sizing in the following way:
- He sticks between 2.5%-5% risk per trade on his overall account size, never risking more than 5% per trade. He trades a variety of setups, using his long-term options and stock strategies to slowly gain profits, while day trading futures to give himself a bump. Risk is highly important to him when deciding which strategies to place, and when to place them.
Risk and probabilities first – profits second.
Strategy Use + Risk Taken Per Setup: Position size & strategy utilized per trade generally remains between 2.5-5%, only selecting larger risk when something really looks amazing.
Methodology: Neil is all about probabilities, pullbacks, and entering his trades at the best time with clearly defined stops, regardless of if he is trading stock, options or futures. Neil absolutely does not enter into any of his setups unless they setup precisely as he likes.
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