adrianallen99
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If you sign over your house to me, Ill give you the secret free of charge, now you cant say fairer than that.
Here is a piece on the importance of Money management that I saved over a year ago. The web site has since ceased. If there is a "secret" in Trading it is to be found in Money Management
"The underlying concept is, that we cannot accurately predict our own performance, and as we cannot influence how the markets will behave, we should at least exercise control over those variables that we have actually control of. And that is the risk that we as traders take when entering a position.
NO set of indicator rules will ever make money in futures trading. So forget about fractals, alligator, turtles, waves, cycles, etc.
The best these and ALL other indicators, including Moving averages and Breakouts, will do is make you break-even and at worst blow your account.
The KEY is in your Risk and Money Management.
Combined with sound risk and money management I could even reverse the above statement: "ANY set of indicators rules will make money in futures trading."
Choose a CLEAR, TREND following indicator. One that an 8 year old could tell you whether it is long or short. ONLY trend following indicators will work. If you have to think for more than 1 second whether it is long or short, it isn't clear enough.
Stick to 1 indicator in 1 time frame. NEVER pay any money for other people's systems. They will NOT work.
ENTRY: Decide on whether you want to use Reversals or retracements. I recommend reversals.
RISK Management:
Trading only 1 contract at a time will cause you to FAIL !!!
Make sure you are well capitalized. This is not a game for those who are not.
The only way to win at futures trading is for you to be larger (have more positions) when you are right and less positions when you are wrong.
THIS IS THE KEY TO TRADING.
Maintaining the same number of contracts for each trade will cause you to FAIL.
Varying contract size is the MOST important thing you must do, if you want to be successful."
Hope this is helpful
"The underlying concept is, that we cannot accurately predict our own performance, and as we cannot influence how the markets will behave, we should at least exercise control over those variables that we have actually control of. And that is the risk that we as traders take when entering a position.
NO set of indicator rules will ever make money in futures trading. So forget about fractals, alligator, turtles, waves, cycles, etc.
The best these and ALL other indicators, including Moving averages and Breakouts, will do is make you break-even and at worst blow your account.
The KEY is in your Risk and Money Management.
Combined with sound risk and money management I could even reverse the above statement: "ANY set of indicators rules will make money in futures trading."
Choose a CLEAR, TREND following indicator. One that an 8 year old could tell you whether it is long or short. ONLY trend following indicators will work. If you have to think for more than 1 second whether it is long or short, it isn't clear enough.
Stick to 1 indicator in 1 time frame. NEVER pay any money for other people's systems. They will NOT work.
ENTRY: Decide on whether you want to use Reversals or retracements. I recommend reversals.
RISK Management:
Trading only 1 contract at a time will cause you to FAIL !!!
Make sure you are well capitalized. This is not a game for those who are not.
The only way to win at futures trading is for you to be larger (have more positions) when you are right and less positions when you are wrong.
THIS IS THE KEY TO TRADING.
Maintaining the same number of contracts for each trade will cause you to FAIL.
Varying contract size is the MOST important thing you must do, if you want to be successful."
Hope this is helpful
Mully.. Truely a GEM. Your post deserves a member of the month award. I wonder how many members will stop and think through your post concepts AND develop a trading method which encompasses the three threads. Being an optimist Im sure a lot of people will be burning the midnight oil.
Obervation+idea+model+testing= Success
Obervation+idea+model+testing= Success
I read something very similar sometime ago by a guy who frequented another BB and someone put all his ideas together, they called him the pitbull or king of the pits or something like that.
He said the same thing about having more on when you win than when you lose. But he went on to say that this only applied to position trading not day trading.
I totally agree that money management is very important ,and that most people(In fact almost everyone) concentrate almost exclusively on entries.
But taking one guys idea on money management and holding it up as the answer, still smacks of holy grail searching. They don`t all come with "system" or "secret" attached to them
I`m sure the old figure still holds true that 90% of traders who increase position size when winning still lose money.
IMHO there are no "secret" entries, exits, indicators, s/r levels, methods, risk managements, money managements, emotional managements, analysis styles or techniques, instruments, derivatives , stocks, markets or time frames.
You have to work it all out for yourself.
This is way most people fail, they`re too lazy to stick with it and put the work in.
Steve
absorb what is useful reject what is useless, add what is specifically your own.
He said the same thing about having more on when you win than when you lose. But he went on to say that this only applied to position trading not day trading.
I totally agree that money management is very important ,and that most people(In fact almost everyone) concentrate almost exclusively on entries.
But taking one guys idea on money management and holding it up as the answer, still smacks of holy grail searching. They don`t all come with "system" or "secret" attached to them
I`m sure the old figure still holds true that 90% of traders who increase position size when winning still lose money.
IMHO there are no "secret" entries, exits, indicators, s/r levels, methods, risk managements, money managements, emotional managements, analysis styles or techniques, instruments, derivatives , stocks, markets or time frames.
You have to work it all out for yourself.
This is way most people fail, they`re too lazy to stick with it and put the work in.
Steve
absorb what is useful reject what is useless, add what is specifically your own.
