The most and I say "THE MOST" important part of trading is money management...PERIOD.
A lot of those market gurus....put this topic at the end, if at all, in their workshops and with good reason. They want you to buy their goods, their indicators and holy grail and money mangement isn't something they can sell you, so why take up the time....just keep blowing off about if the angle of the 34ema is 14 degrees or more then blah, blah, blah and my indicator shows you just that, by the way you can purchase it for only $499.00 during the workshop and along sign up for my daily updates and the moon cycles.
But understanding money management is only the first part of this puzzle. Since we are all different, you will also have to understand yourself and again how can Mr. Market Guru ever handle that issue. Most of us have "ISSUES", you know....hehe!!!
So in this educational workshop...we will first spend time understanding money management by playing the marble game, then we will work thru the kelly formula along with some other ideas.....and then work on how to apply them to fit "YOU"....and how to continue working on this area of your trading.
Now this doesn't matter if you trade corn, wheat, S&P500, stocks or if you trade intra-day, swing or long term....but spending a couple of hours on this along with were to go for more details and workshops in this area should help you with the second problem we all face in trading......THE FEAR OF PULLNG THE TRIGGER.....
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4 comments:
Dennis / Tater, do you have an approximate date for The Workshop?
And how is the House / Estate/ Castle going?
Also what was the outcome of the accident with the rockers?
Money management is the most important part of trading.. PERIOD? Hm.. sure its important.. but hey there are always 2 sides of a coin..?
Although I do agree money management is by FAR the area that needs the most improvement for most people.. on the flipside no matter how good people are at Money Management and Psychology.. without a solid system in place they still wont make money! Putting aside the need for money management to find a good system - say you had a working system you now have two possibilities.. over-agression and under-agression.. if you are over-agressive you wipe out.. if you are under-agressive you dont make as much money as you should.. and perhaps also risk more than need be for the returns you are getting. But hey.. atleast one of those scenario's you make money right? lol
Okay well, relying on chance ain't such a great idea.. that scenario was just for the purpose of illustration.. To me, I see trading as a jigsaw puzzle.. to which you need all the pieces.. Many people totally forget money management and just focus on trading.. others say that it is everything.. but unless you have all the pieces... you aint goin nowhere :)
That being said - Money Management lets you stay in the game.. collect all the pieces of the puzzle if you like. So I guess from that angle you can say Money Management is the most important part.. Hey look.. I went a full circle.. it's a slow day.. I'm bored.. so shoot me! rofl
dolzjnnDennis,
just don't forget to tell them, that you trade 1 contract / 10.000USD in your account. Anything less and the chance you blow your account due to overleveraging increases exponentially. Teach them to make "just" 25 ticks a day and it takes less than 10 weeks to increase your account to 20k trading 1 contract.
They will have learned
- to trade without risking their account beeing blown out.
- to be disciplined, even if they think they are athe best traders in the world
- at least some of the quirks the contract they like to trade comes up with.
when is this eminar and where?What name is your hotcomm room ?Thank you.
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