Money management will make or break you in this game. How much you risk and when, is up to your account balance, your trading plan and your risk appetite. What I do, not that it is necessarily correct, is make the risk for each trade the exact same, no matter what the circumstances. Take the emotion out of it. I risk 2% of my total account value on each trade. If the contact I am in loses 50% of its value, I get out. So, I figure out what 2% of my account is, figure out what a 1/2 loss is on the contract is and then buy the number of contracts that could take a 50% loss and be at or under my 2% total account value. Not sure that totally made sense. For example if my account is $10,000, the total I would risk is 2% of that ($200). If the contract I want to get into is going for .50, then I would be willing to stay in until it drops to .25, then I would get out. Each contract is worth 100 shares so you have to multiply the cost by 100 to get what it is actually going to cost you so the cost per contract is $50 and I'd be willing to lose $25 per contract. I've already decided that I'm willing to lose a total of $200 on the trade so at a $25 loss per contract, I'd get into 8 contracts. Just my way.
Semper Fi Marine. Welcome home.