my view

Discussion in 'Professional Trading' started by Batman28, Aug 13, 2006.

  1. Batman28

    Batman28

    hi guys,

    some advice:

    for novice:

    1. don't day trade.
    2. don't spread bet.
    3. positioning - never risk more than 5% of total capital on any single trade.
    4. diversify.
    5. don't trade on margins.
    6. understand the product you trade.
    7. you're only right 50% of the time.
    8. know economics.
    9. do not automate strategy

    for pros who prove successful:

    1. don't day trade.
    2. don't spread bet.
    3. positioning - never risk more than 10% of total capital on any single trade.
    4. don't diversify.
    5. you're only right 60% of the time.
    6. know psychology, recognise anamolies
    7. do not automate strategy


    for geniuses (top 5%):

    1. day trade
    2. spread/binary bet/exotics
    3. know statistics
    4. positioning - never risk more than 15% of total capital on any single trade.
    5. you're only right 75% of the time.



    the reason most traders fail, is because they simply classfy themselves in the wrong group above. sadly they all think they're the reincarnation of livermore. be humble, work hard, learn, and once you past level 1, go to level 2 and don't expect to be on 3.
     
    #1     Aug 13, 2006
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  2. ImamicPH

    ImamicPH

    One's I like:

    for novice:

    2. don't spread bet.     mistakes can happen
    3. positioning - never risk more than 5% of total capital on any single trade. realistic. If you tell them 2%, they'll go over anyway
    4. diversify. not like a mutual fund, but never use more than a 1/12 of total cap in anyone position
    5. don't trade on margins. wouldn't it be nice
    6. understand the product you trade. the fundamentals and market enviroment
    9. do not automate strategy not until you've become a pro

    for pros who prove successful:


    3. positioning - never risk more than 10% of total capital on any single trade. I stick to a 1/12 but this is the right idea
    6. know psychology, recognise anamolies The more you trade the easier it becomes to forsee emotions and how you can get draw in



    for geniuses (top 5%):

    1. day trade I don't like overnight pos. for anyone
    2. spread/binary bet/exotics Once you got down the basics
    3. know statistics It gives you more confidence
    5. you're only right 75% of the time. Genius LEVEL
     
    #2     Aug 13, 2006
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