Why Is The Obvious Not So Obvious?

Discussion in 'Risk Management' started by nysestocks, Jan 25, 2009.

  1. colcan

    colcan

    I think you may be right. It's a shame we don't have a crystal ball.
     
    #5181     Jun 17, 2016
  2. J_Smith

    J_Smith

    Make or break time?

    J_S

    Screenshot_2016-06-17-20-18-22_1.jpg
     
    #5182     Jun 17, 2016
  3. J_Smith

    J_Smith

    You don't need one - just need to do some looking, take on the risk - win or lose, accept it and move on!

    J_S
     
    #5183     Jun 17, 2016
  4. colcan

    colcan

    There's no magical indicator? :) I agree with you completely J_S. I was just joking around.
     
    #5184     Jun 17, 2016
  5. colcan

    colcan

    It's tough to take on any risk when it involves real money. Been taught to be risk aversive all these years. How did you manage to overcome that?
     
    #5185     Jun 17, 2016
  6. J_Smith

    J_Smith

    It is amazing what a few big losers will do for your way of thinking - most never really listen till they have bout 3, which is exactly what happened me!

    J_S
     
    #5186     Jun 17, 2016
  7. My 2c worth...

    Decide on an amount of money you are willing to blow. (One month's paycheck or whatever)
    Deposit this amount, and no more, in a trading account.
    Don't use leverage or trade on margin. Maybe stick to stocks and ETFs.

    It's harder to trade a small account due to comms but this is the last thing anyone should be thinking about when starting out. You don't hear of many traders blowing their account because of comms.

    If you dream of making a fortune, or being able to quickly pack in the day job, then forget it.

    Good luck one and all.
     
    #5187     Jun 18, 2016
  8. K-Pia

    K-Pia

    Blowing an account because of comms ?!
    XD ... If you blow up it's because Costs > Retuns.
    A loss is a cost. Comms are costs. Slippage is a cost...
    Gardening teach patience. That one of J_Smith advantage =P
     
    #5188     Jun 18, 2016
  9. J_Smith

    J_Smith

    There are a good few ways to make, and lose, money trading - but each one involves you putting your money at risk.

    Money makes money, so without adequate money you are facing an uphill battle - leverage for those with little money is only a fools game, especially if used for longer term trading, as margin call can happen if market makes a big move against you.

    It really is simple - only use money you can afford to lose - that does a few things - removes fear, and allows you to trade with wider stops - which gives you a better chance of making a profit, even though you will have some drawdown.

    Timing is everything, and, when you get it completely wrong, you must then take your loss and reasses, as you were obviously wrong.

    Staying with a loser for too long is not good, as it costs you money with missed opportunities, and also affects you mentally - you must know your max limit, and, suffer it if the market makes that big move against you.

    Keeping in touch with the market reduces your risk, as, you get a feel for what is happening when you follow it closely - taking your eyes off for even a day or two can cost you big - nearly happened me lately, but as I was not afraid of losing +$5k, I ended up making nearly $1k - a real example of what I have just mentioned.

    J_S
     
    #5189     Jun 18, 2016
    K-Pia likes this.
  10. J_Smith

    J_Smith

    No money made, or lost, without placing trades!

    Must put the levels in my mobile phone for next week and keep an eye on market when it opens.

    Bias is long VXX with a view to holding for 2-4 weeks, and maybe sell some calls when positions opened?

    No major US news on Monday!

    J_S

    Screen Shot 06-18-16 at 11.58 PM.PNG

    Screen Shot 06-19-16 at 12.50 AM.PNG
     
    Last edited: Jun 18, 2016
    #5190     Jun 18, 2016