/biz/ - Business & Finance

>>749956
Maybe I don't understand because I am reading your link

"MODEL NO.1 – UNITS PER FIXED AMOUNT OF MONEY (UPFA)

The first model tells us how many positions we can open for each X dollars on our account. If you open an account with 5,000 $ and decide to use UPFA model, then you first need to determine how many contracts you will trade with this account. Since this is relatively small amount then let’s say, that we will trade only one contract no matter the market (if your margin allows you to enter at all) with according stop-loss. This means that you will also trade only one single market at a time. However, if you are successful, you will very soon transform those 5,000 $ into 10,000 $. And since you have determined at the beginning of trading that you will trade 1 contract for each 5,000 $ then you will logically begin to trade with two contracts. Be it in a given market or each one on a different. Your trading positions will increase by one with each 5,000 $ you will make"

Is this saying that it's ok given that you've already decided "this is how much I will invest in each" or am I completely missing the point? Should I be using the same portfolio management concepts/distribution i would have for a bigger portfoilo even though I just have a small amount?