you are part of a common pool. what do you know about risk managemnt by the managers of this pool.. if somebody blows up big time your money is gone or can't be withdrawn. by the way you didn't mention your leverage ratio.
I must respectfully disagree hans. I believe dondinero should consider the 7K, a business expense. Not only that, he should think it's the best money he will ever spend. Learning how to trade can cost a lot of money. dondinero pls advise us when you have blown this account, so we may send you a thank you note. and of course, welcome to ET !!
Agreed on the first point. Leverage is up to 80x, but I'm only using about 40x. Let me be clear, if this were the first time I ever traded, the odds of survival would be very slim. I learned to trade on some else's dime - lost a bunch of thier money and dug myself into an imaginary hole due to thier commission structure. So, I left , saved up my next grubstake, and got back in. The conservatism regarding leverage, initial account size, etc. on these boards makes sense for someone who has a lot to defend. My posts are mostly geared toward young people (like myself) who want to trade for a living and who only have a very narrow window (up to age 28ish) where the risk/reward of taking the chance is highly favorable.
at 40X a 2.5% move and you are wiped out. at 80X a1.25% and you are wiped out. where is risk management that you don't get wiped out and eat into partnership capital?
I'm not going to get into a long diatribe about my own trading strategies, but successful daytrading is about cutting your losses immediately. Trading software allow for this. I pyramid winners and I'm out as soon it moves against me. Tangentially, when other trader's accounts dip below $1,000, they are normally required to deposit more capital. And finally, very few overnights are permitted - and only for small size.
Yeah what was I thinking actually offering solid advice. when all he wants is a cheerleader to tell him what he's already decided to do is a GREAT IDEA. btw I can tell you this if I had run up my account 400% in 3months of REAL TRADING I would not be changing a damn thing except pulling funds out as a buffer against a blowup. hey I've definitely mastered the art of blowing up an account(4-5times). I must be slipping because it's been about 2.5 years since I've done that.
we have lost tuch with the subject. Iam looking for a good platform and broker, I have 7.000 to start with.. Thank you, I thank your response.