I notice many of you new traders are doing the wrong thing and hence not making any money Rule number 1- The idea behind trading is to make money,but 90% of you are losing money.You don't wanna do that,in short you want to make money not lose it. Now,don't worry.i'm not gonna talk about any difficult stuff you won't understand it's all simple. So if you know nothin' 'bout trading forget books,gurus etc just follow this simple holy grail plan,and you too could be as rich as i am.Yes folks it's true,,,,i am embarrassingly rich.In fact, i got so much money i can't be bothered to count it and employ somebody to do that for me. I'm so rich that when the staff in the bank see me coming they lock the doors and pretend to be closed in case i withdraw all my money at once..Hell,even the cash machines tear themselves outta the walls and leg it down the street when they see my wallet opening. So stop losing money to start with'cos that is just stupid behaviour and i've no idea why you'd wanna do that.I've seen guys throw themselves outta buildings just 'cos they lost some money,when all they had to do was listen to some simple advice. Luckily you are in the right place at the right time,so pay attention and you might just learn something today.Mind you a couple of guys threw themselves down the stairs when i wouldn't take no for an answer regarding them giving me just 2 minutes to explain why they were going wrong. Never did understand why Goldman Sachs don't put a sign outside the building until then. Now,one thing that gets you guys into trouble is you don't know how to manage your money.Firstly,let's take your winning trades 'cos they take care of themselves. When you are winning you should have already been highly leveraged...highly...leveraged..sounds so simple doesn't It?. I told you it was gonna be simple.The holy grail is always simple that is why most dummies never find it.It is toooo frippin simple. Some of you may have already realised what the implication of that simple statement is.That's right,when you have a losing trade you should be extremely under leveraged.Never ceases to amaze me how the simpleminded don't get simple concepts. You'll be amazed how things turn around for you if you stop putting on losing trades.If you don't put on a losing trade then how the hell would you lose money? The market cannot force you to put on a losing trade..no way. So it follows that there is no way it can stop you putting on a winning trade. Just tell me what the hell is so difficult about these concepts? It ain't rocket science is it ? I see so many journals here where traders are taking losses.This is completely insane.What is the major malfunction with these guys? Why don't they just put on winning trades instead?And the tedious endless explanations why they did this and they didn't do that,jeez it's boring. Still. a loser is a loser i guess. But if you wanna be a winner just re-read the above advice until a light bulb goes on in your head (but don't forget to turn it out when you're done,'cos wasting energy is also stupid)
Averaging a position. Yep this stuff is not written on books. An ex dealer wrote : "go in to the pit and ask to the red jackets if they use or where they place the stop loss".
I suppose with deep enough pockets, if you keep averaging down and waiting for a bounce, then cover after it's in the green (highly leveraged), you can make big coin. But you need an incredible amount of money for that. What happens when you get caught the wrong way at the start of a bull or bear market? What then? Call Bernacke?
We'll be the judge whether it's better or not.And so far i'm winning hands down.Now i know what it feels like to talk utter balderdash and still have people take it seriously.... kinda weird,,makes me look relatively sane..relatively