Yannis
Registered: Jan 2002
Posts: 5286 |
08-13-03 02:53 PM
Quote from WDGann:
Money Management without edge is worthless.
Using Money Management as an excuse for lack of skill is stupid.
It depends on what you call money mamanegement and edge - many traders use edge to mean entries but for me, mm is part of my edge.
On the other hand, the word skill is very important here - in many ways trading is a skill sport, like golf or racquetball.
Now, I wish someone had told me the following, a few years ago (but, who was listening?)
1. Study the best books (e.g., Alex Elder's Trading For a Living, etc) and take the best trading courses until you have a detailed plan on what exactly you are going to do, when, why, how, etc;
2. Use a simulator until you have 10-15 consecutive positive days;
3. Start trading for real with 100 share lots of medium/low priced stocks - grow from there on the basis of either a fixed fraction or a fixed ratio mm method;
4. Watch what you stand to lose twice as hard as what you stand to gain - managing your risk and respecting your stoploss triggers is key;
5. At all times, minimize your fixed and variable costs while insisting on high quality tools and execution (e.g., go with TS and/or IB, etc).
Hope this helps 
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