Manoj's Trading Diary
- Thread starter manojborle
- Start date
1. Trading only 1 contract at a time will cause you to FAIL !!! Make sure you are well capitalized.
2. 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.
3. Maintaining the same number of contracts for each trade will cause you to FAIL.
4. Phantom of the Pits points out that you should let the market prove you correct instead of letting it prove you wrong by hitting your stop loss.
5. Make sure your profit goal is larger than your stop loss point.
6. Never let a winner become a loser. Adjust your stops as the market moves with you.
7. 80% of your Profits will come from 20% of your trades.
8. Use a breakeven stop to never let a winner become a loser
Scot Billington
- emotions can be managed but not controlled
- view each trade merely one in a series of probabilities
- know why you take a trade and what must happen for you to remain in it (!!!).
If it fails to happen - get out even if your stop has not been triggered.
Trading is all about management - yourself, your money, your attitude and your position. It is NOT about predictions, forecasts or OPINIONS.
Van Tharp:
3 MM algorithms (Minimum will be taken):
1) 1% of core capital:
a) (core capital - Total outstanding risk)*0,01 = x
b) x / $ value of initial stop = Nr. Contracts I
2) new risk limited (total risk <=25% of equity): before execution: equity * 25% - total risk= y
if y >0, y / $ value of initial stop = Nr. Contracts II
3) ongoing volatility (10 day M.A. of ATR): max 2% of equity
"consistent profitability" needs the learning of three lessons.
1 thinking in terms of probabilities. Ultimately, this needs the development of a trading plan (including a money management plan).
2 executing that plan as flawlessly as possible and
3 accepting the profits the markets gives a trader as a reward for his efforts.
Continued....
2. 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.
3. Maintaining the same number of contracts for each trade will cause you to FAIL.
4. Phantom of the Pits points out that you should let the market prove you correct instead of letting it prove you wrong by hitting your stop loss.
5. Make sure your profit goal is larger than your stop loss point.
6. Never let a winner become a loser. Adjust your stops as the market moves with you.
7. 80% of your Profits will come from 20% of your trades.
8. Use a breakeven stop to never let a winner become a loser
Scot Billington
- emotions can be managed but not controlled
- view each trade merely one in a series of probabilities
- know why you take a trade and what must happen for you to remain in it (!!!).
If it fails to happen - get out even if your stop has not been triggered.
Trading is all about management - yourself, your money, your attitude and your position. It is NOT about predictions, forecasts or OPINIONS.
Van Tharp:
3 MM algorithms (Minimum will be taken):
1) 1% of core capital:
a) (core capital - Total outstanding risk)*0,01 = x
b) x / $ value of initial stop = Nr. Contracts I
2) new risk limited (total risk <=25% of equity): before execution: equity * 25% - total risk= y
if y >0, y / $ value of initial stop = Nr. Contracts II
3) ongoing volatility (10 day M.A. of ATR): max 2% of equity
"consistent profitability" needs the learning of three lessons.
1 thinking in terms of probabilities. Ultimately, this needs the development of a trading plan (including a money management plan).
2 executing that plan as flawlessly as possible and
3 accepting the profits the markets gives a trader as a reward for his efforts.
Continued....
Last edited:
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