I am convinced that if you have brilliant money management techniques in Life and trading you can be a mediocore trader and be successful in this game if you want go at it alone. Even if you are brilliant trader with poor money management...You can blow yourself up... My Definition of Money Management: Making Small Bets Cutting losses Not blowing your trading account on unnecessary BMW Living below your means... True Story.. I turned a 10k account to 100k account swing trading part time in 4yrs..I live in a 1 bedroom apt...and drive a rodeo..However,.I never worry where my next meal is coming from.. An acquaitance I know had a 500k account..Its all gone now..But ofcourse he own 2 mercedes and 400k home.But he does not trade anymore...He is sweating bullets on how to make ends meet every month Hey I love this game and I want to be in it for the long hall...If it means sacrificing material goods in nearterm ...Ill do it what it takes.. Thoughts..am I nuts. I just come in here and babble with these random thoughts..Sorry if they annoy you...T
Topguntrader, I don't think you're nuts at all. It's interesting how you tied Money Management to trading and life. I have actually been thinking about that correlation a lot myself lately. I agree that a great trading strategy with poor Risk Management and Position Sizing will eventually be doomed! Keep doing what you're doing and eventually you will be the "Millionaire Next Door"!
You could trade on the decisions made by a chimp pointing at a stock list and still be profitable as long as you instill proper risk, money and position size management... Here is a great article... www.hardrightedge.com/wizard/bf1.htm I can't say it any better.