naturallly, but when facing a decision I ( most of the times, I don't like losing money if that's the impression you got...) I prefer taking the risk of a loss rather than playing on the safe side. somewhat reasonable considering the fact we're dealing with a dunamic field like forex...
Trading and investing rules aren't designed to make a lot of money, they are designed to preserve capital, be consistently profitable and keep the profits that you do make. I didn't make "a lot of money" last year, however, I consistently reach my annual goals and am able to keep it all, a consistent 20% and 6-figures of additional annual income is sufficient for me. I may be "noob" to trading, however, as an investor rules play an important role and without doubt play a much greater role in trading. You may flame my posts as much as you like, they are not intended for you or for the experienced traders (experienced traders are already aware of the importance). I merely post to assist other "noobs" in similar situations; attempting to secure their retirements, shelter and feed their families. I have learned a tremendous amount from many of the ET members and I intend to contribute to the best of my ability with constructive posts. So flame on if you must... Safe trading
A trader friend of mine named Guru Bob always maintained that there was only two important rules in trading 1. Don't loss money 2. Never forget rule one They seem to work! Regards Johno
Hi, Leverage and Compound Returns are truly gifts from the gods for people who understand how to use them. The trouble is that most traders spend virtually all their time looking for a surefire way to predict the market,consequently they never realize that the answer is in the Leverage and Compound Returns which equals-RISK AND REWARD I suspect that this was what Jack was trying to explain to STOCK TRAD3R on one of the other threads regarding optimization. Anyhow that's my take on leverage in Futures/Options trading Best Regards Johno
Rather than rules (they really become second nature and many break them now and then since we are humans) you need to look for the CLUES to inform your intuitive mind that what you are observing is what leads to your "EDGE". When we were kids we used to hear the GOOD HUMOR ice cream man coming around the block because he rang those bells on the ice cream wagon. Sorry boys and girls but no bells for mkt candy. Opportunities are seen "GOING" away as amateurs missed the clues, opportunities are seen "COMING" as professionals read the mkts and play the clues. Pretend you want a ice cream bar and you will know when the GOOD HUMOR man is rounding the corner. PS..........there are no perfect signals. PERIOD!!!!!! Be prepared to lose some trades, losing is a big part of being a consistent winner. Labor day............be patriotic and go out and buy something with the UNION label ...
stock_trad3r Registered: Jun 2006 Posts: 3277 09-04-07 07:03 AM Don't overdo the leverage. That is how the vast majority of people blow up I'm referring to optimization and how it relates to risk and reward. Rather than considering how many contracts / available margin, I prefer to maximize leverage whilst minimizing risk thru strategic use of the financial instruments available to me! Regards Johno