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I see some people are doubling their portfolio in a few days

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Shard
Super Contributor
Its always good to set goals for yourself. By keeping it simple and doing things the way you're comfotable doing it, it becomes a reality. Having a resource where you can learn from others also helps alot in your learning and finding your own style. Have a look at how persistence paid off for CPS below in the link below. http://www.realchartist.com/videos/free-videos/148-kiss-how-to-double-your-money.html
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13 REPLIES 13
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Thanks Shard, I did not even see that till now. I really did not need to be in the spot light.
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In a few days..?you should reconsider your money management principals..sounds like a real gamble..Think alot of traders did very well in May, but sure they didnt use all there trading capital..well done in any case, just a friendly note the market will taketh back faster than she giveth..
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Thanks Frost, Money management is 100% under control. I remove all profits on a weekly basis keeping trading capital equal at all times.
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and if you have a bad trading month..are you going to put capital back into your acc, or stop trading?
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Profit removal is to avoid hubris and ensure that if I have a loss I can top up again. Losses do happen and that is trading, but planning for them is what is as important as making profit.
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Rams
Super Contributor
ah.. I disagree...you cannot top up losses and call that good money management because then your losses will be infinite..
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Shard
Super Contributor
Ofcourse your freaking can. I trade 2 contracts, so I need about 40K in my account. If I've been removing money the whole time I'm not just going to start trading 1 contract because I have a bad run and my capital drops. I fuel my strategy because I believe in it. PS any investement is a gamble, there are no certainties in life, its all about risk and return.
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Rams
Super Contributor
you contradict yourself....you can have a second bad run...topup and you can have a third bad run to infinity... and this is a discussion...no need to have a bad attitude, good humour is fine but not a bad attitude
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Shard
Super Contributor
Theres plenty of bad attitude flying in here already, just joining the party.
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prancing_horse
Super Contributor
Rams, I think you reading it wrong.There is fair amount of profit already and a time will come where "working capital" will have to be introduced when the loss is great enough that warrants it.He is obviously limiting himself to the amount he trades with at any one time by skimming the profit off.I on the otherhand only remove profit at the end of the financial year, and increase or decrease the size of my trades as a percentage of my portfolio.Playing the market is like snakes and ladders, you must try and make the ladders taller than the snakes are longer, but a few snakes you are bound to slide down, it's unavoidable.CPS,well done so far, go for it "balls to the wall"
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Rams
Super Contributor
prancing horse, what you say makes sense--you have to take of some profits but not all of it and certainly not weekly. My point is that you can take off profits but but not to the point where you have to top up every loss...simple trick I use: one third of profits go back into the market, the next third belongs to the taxman,and the last third is for some good wine and ah, okay you know... if you losing, then hey dont worry about the taxmans share..he not goin to get any..mor wine and ah, okay you know
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Rams, You seem to understand a part of it and I think maybe I have explained it incorrectly. I have a 2 contract trading amount plus extra for marginal error. Anything over that amount I take out of the account. This allows me not to get over confident about trying to trade more than I physically can. When I have built up enough capital to trade additional contracts I will add another and so on. Simply my method is to have 2 contracts worth of profit/capital for every 1 I risk trading. so the 2 I have I now need at least 6 times that to allow for an extra contract to be played. Small risks, massive profit management.
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But as I said above, I did not actually need to be in the spotlight, and frankly each person has their own methods of money management and trading. Mine is extremely conservative but productive. My system works for me and as such I am happy with it. It is completely readable and my entries exits etc are posted on my personal pages on the site so if you are interested go read it. If no I am not phased any which way.
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