Why Is The Obvious Not So Obvious?

Discussion in 'Risk Management' started by nysestocks, Jan 25, 2009.

  1. J_Smith

    J_Smith

    Some info regarding new private trading group.

    Name = TFF Trading Group

    Max no. of members = 5

    Max Risk per trade = 0.5% of account cash value, not margin.

    Actual Risk per trade = 0.1% to 0.5% of account cash value, not margin.

    Profit Target per trade = market dependant, using average values as guides.

    Target Risk:Reward ratio = 1:4

    Max drawdown = 2.5% of account cash value, not margin.

    Markets traded = individual trader choice

    The risk per trade and max drawdown are not negotiable, so if you do not have sufficient funds your trade size will be very small.

    There is absolutely nothing you can do about this, as leveraged accounts are only used to facilitate daytrading highly priced stocks, and the use of leverage will not be allowed in any other circumstances.

    This is for your own good, believe me, so keep that in mind if you want to consider joining TFF Trading Group.

    J_S
     
    Last edited: Jan 24, 2016
    #4601     Jan 24, 2016
  2. Vindago

    Vindago

    JS sounds good, especially as it will help me keep Risk under control (I have lost 5 figures myself last year), which I do... until I don't...

    If possible I would like to join the TFF group. (by the way what does TFF stand for?)

    I trade Stocks (focus on one Stock in particular) and a bit of Forex.

    VO
     
    #4602     Jan 24, 2016
  3. J_Smith

    J_Smith

    You were one of the reserved positions VO, and you have now confirmed.

    TFF = The Famous Five :)

    J_S
     
    #4603     Jan 24, 2016
  4. Vindago

    Vindago

    cool! though famous is way ahead if ever... I would be happy enough to be one of the TMRF (The Moderately Rich Five :sneaky:)
     
    #4604     Jan 24, 2016
  5. J_Smith

    J_Smith

    Yes VO, we will be realistic, no dreaming or silly thoughts that can cost you money.

    There is only 1 guarantee, and that is that you will lose money, but in order to make money you must learn how to lose money correctly, and taking on more risk than you can afford, is one sure way to lose money very quickly.

    J_S
     
    #4605     Jan 24, 2016
  6. J_Smith

    J_Smith

    Here are some typical trade scenarios for lets say a $20,000 cash account, which is sorta at the minimum level required, and a bit more obviously if you want to do some daytrading.

    Symbol = XIV etf

    Max risk per trade = $20k x 0.5% = $100

    Trade A

    Stop loss = $1.00

    Trade size = 100 shares ( 100 / 1)

    Trade B

    Stop loss = 0.50 cent

    Trade size = 200 shares ( 100 / 0.50)

    The maths are very simple, and your stop loss level selection will determine your trade size, at all times.

    Of course, as stop loss level selection is critical to trade outcome, the main focus will be trying to determine the best stop loss level to select, based on chart analysis, using nothing more than bars or candles.

    The more things we introduce into our decision making, the more opportunities we will miss.

    If we take the trades, and keep taking them, then, with proper stop loss level selection, we will make more money than we will lose.

    The anount of money we make will be determined by our take profit level, which again will be based on bars or candles, nothing else.

    Once we perfect the stop loss level selection, then 90% of the hard work is done, as you will never go broke taking profits, even if you leave money on the table.

    J_S

    Screenshot_2016-01-24-17-27-36_1.jpg
     
    Last edited: Jan 24, 2016
    #4606     Jan 24, 2016
  7. Traderz

    Traderz

    If possible I would like to join the TFF group as well.

    TZ
     
    #4607     Jan 24, 2016
  8. J_Smith

    J_Smith

    Yes TZ, you were also on the reserved list.

    3 down, 2 to go, with 1 reserved place on hold for now, so only 1 place left at the moment.

    I will start the new thread in a bit, and we will get going with 3 anyway, as I am ready to start doing some regular trading, although daytrading is still a bit away.

    J_S
     
    #4608     Jan 24, 2016
  9. Stewie

    Stewie

    No offense but this member, @Traderz has 5 posts... 5 whole posts in a year. How is a logical person to actually explain how a poster with 5 posts in a year can actually have a reserved spot on this list? What type of credibility could they have built up in this time to even be considered for a spot, never mind have a spot reserved?

    This whole thing is a joke. We once again have multiple aliases talking with eachother. Please, take this to PM. This entire episode with you during the past few days has been a total waste of time. First you make it sound like you want help, then you attack those helping you, and now you're coming off as some trader that will lead those struggling to victory. You might actually take the crown away from surf with regards to how moronic you can actually be posting online.
     
    #4609     Jan 24, 2016
    WillWhite likes this.
  10. Traderz

    Traderz

    I live in Canada and I am not some kind of fictitious alias. Yes I don't post much on this site cause of people like you but I do spend a lot of time reading and you kind of develop a sense for who's who in the zoo.

    Here's a quote for you to ponder and in my opinion relevant to trading.

    "How can you soar like an eagle if you fly with turkeys?"

    And one more:

    "Never argue with a fool, onlookers may not be able to tell the difference"
    Mark Twain
     
    #4610     Jan 24, 2016