Frequently Asked Questions  -  Risk / Reward

Probably the most important aspect of any form of trading and one that is very rarely covered by other services.  I cover it here in detail as I personally believe it is the most important aspect to sensible trading and without these guidelines no service is complete.

How Much Should I Use To Open My Account ?

As always, never use money for trading that you cannot afford to lose.  As this varies from individual to individual it is impossible to ever recommend a specific account size to anyone.

NEVER TRADE WITH MONEY YOU CANNOT AFFORD TO LOSE

How Much Should I Risk Per Trade ?

I never risk any more that 5% of available balance on any one trade (NOTE: Core service 2008 results - were at 10% risk per trade and has since been reduced to 5% in line with the 100% Club).

Why Not Risk More - Other Providers Do ?

I am not really interested in making big claims of monthly gains then not publishing figures for a few months because all gains were lost, anyone can do that.  I make public all of my trades every month for the Core service.  For the 100% Club there are just too many trades to list on the website - but I do provide them if requested.

Does This Not Means Your Performance Will Never Be As Good As Your Competitors ?

Percentage wise this is possible but in terms of risk per trade and drawdown, something all professional traders (those that make money) pay close attention too I am satisfied my customers will be more appreciative of a managed and structured attitude to risk.  And I always welcome anyone to compare the returns of my services against others.

How Do I Calculate How Much To Risk Per Trade ?

Once signed up you are entitled to a free copy of the easy to use BOM Signals Fixed Odds Trade Sizer which quickly and effortlessly determines the recommended trade size based on your account size, risk aversion and the trade signal details.  After signing up, simpy send an email to signup@bomsignals.com with "TRADE SIZER" in the title and it will be sent to you.

How Much Can I Expect To Win Per Trade ?

With the Core service, Typically, between 30% and 50% of your original stake.  With the 100% Club service, an average of 100% of your original stake.

If I Have A Losing Trade How Much Can I Lose ?

Your original stake, which, assuming you risk no more than 5% of your available balance per trade will be just that, 5% of your available balance.
 

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