That's what I thought, trading order flow and all. If you'd said spot you can probably guess what my next question would have been! The OP suggested putting in ~$8k to start (too much in my opinion but it's all relative I guess), so maintaining any kind of reasonable money management would be nigh on impossible trading futures, and emicro is too expensive..... I guess spot is his only option in the circumstances given his stake, and seeing as how you trade futs using order flow you'd be about as much help to a conservatively funded spot trader as a chocolate teapot! ps it's come a long way since the '80's you know!
Next time, please quote the person you are responding to. If you are responding to the quote from your "blog" that , there are FEW experienced traders here on ET who would take this seriously. Paper money has LITTLE bearing on real money. It is an academic exercise that brokers and system vendors recommend. The emotions, slippage, fees, disruptive events and a whole lot more make this the kind of statement a newbie makes. Is it a good start? Yes. But your statement is totally ignorant. Apparently, you are stlil a paper trader, unless you want to post verifiable broker statements showing serious profits (yea, right). With 3 posts, you are not even in the mosquito range on ET yet.
ALL YOU NEED TO KNOW ABOUT TRADING * Price either goes up or down. * No one knows what will happen next. * Keep losses small and let winners run. * POSITION SIZE = RISK / STOP LOSS * The reason you entered has no bearing on the outcome of your trade. * You can control the size of your loss (skill) but you can't control the size of your win (luck). * You need to know when to pick up your chips and cash them in. Expectancy = (Probability of Win * Average Win) - (Probability of Loss * Average Loss) You can not control the probabilities of wining or losing. You can not control your average win size. The only part of the equation of the equation that you can control is your average loss size. Price is the same on all time frames. The higher the higher the time frame, the more data compression. If you have a $5,000 account then assuming you risk 2% per trade: MAXIMUM TRADE RISK = ACCOUNT BALANCE * % RISK MAXIMUM TRADE RISK = 5,000 * 0.02 = 100 Now to determine position size, we need a STOP LOSS. Assuming a STOP LOSS of 10 pips: POSITION SIZE = RISK / STOP LOSS POSITION SIZE =100 / 10 = 10 mini lots. That is the maximum position size you should trade with based on trade risk and stop loss. If you net 10 pips, your account balance increase by 2%. Choose Your Advice Carefully "Since your mind is your most valuable asset and your most valuable lever, you need to be careful what you put in it. Sometimes it is even more difficult to get rid of thoughts and ideas that are already in your mind than it is to learn something new" - Pg 119 WHY WE WANT YOU TO BE RICH
Absolutely! Psychology is the most important apsect of consistent profitability, without it all the other trading mantra, wisdoms, and well-worn platitudes which people repeat verbatim to try and sound clever, are worthless. Confidence in a strategy can be built up using demo, if it works on demo then there's no reason for it not to work live (with specific exceptions of course). Psychology > Money Management > Strategy There are a lot of people around the forums who have plenty of theory but very little, is any, practical trading experience!
"One thing kids should be taught at a young age is that when someone belittles another person's words and dismisses him as a kook, an entertainer, or "not a serious person," it's usually a sign of fear, jealousy, or both. Intelligent, mature adults of goodwill do not dismiss opposing viewpoints. They listen, weigh what the other person has to say, then, if warranted, express their disagreement in a civilized manner. " - Robert J. Ringer
Well I agree with Robert J. Ringer whoever he is/was, reasoned and logical debate is what forums should be all about! edit: Ah I found him... âReality isn't the way you wish things to be, nor the way they appear to be, but the way they actually are.â ...and this one... âIf you are prepared, then you are able to feel confident.â Reality, preparation, and confidence, all very relevant to trading in my opinion! Wise old Bob Ringer!
Cable, you now have a stalker, that means you have reached celeb status, congrats. The Ever Venomous VIPER
You know something, I think you're right! Hey, cool or what! Celebs celebrate so I'm off for a snifter at the local hostelry...any excuse! Ciao ciao luvvies!