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I am just curious as to whether you have tested your strategy before you put any money at risk. Doesn't seem that many people here take that step.

hedge funds are not trying to control future actions of banks, just trying to make money for their clients and themselves. The banks also hire the PhDs to test strategies. Some work, some don't. Some work for a while, then stop working, and the game continues.

There's not a successful hedge fund out there that doesn't rigorously test their strategies before putting real money to work. They all hire PhDs in math, engineering, physics, etc, to do that for them, and they pay them big money to do it.

Joe, testing is not equivalent to trading. Clearly not a good idea to "test" a strategy with real money.

Shelton, after your rollover, you would use the 20 day trailing stop, not the 2N stop. I know all about the system, so feel free to ask me any other questions you may have. Scott

In my own opinion, to create the discipline to stick with your strategy when things aren't going your way, you need to rigorously test the strategy so that you have a good idea of what to expect. Most people start trading without having a clue as to what to expect. They simply hope that what...

With only $5,000 to trade, you have no business trading. The amount one should risk per trade is dependent upon a few factors: 1. The expectation per trade of the strategy being traded 2. The desired rate of return 3. The trader's tolerance for risk The only way to really figure out how...

Have you tested your idea?

It depends on what group of professionals you are looking at. Mutual fund managers? They have a more difficult time of beating the S&P. Look to the hedge funds and commodity trading advisors. Many of them beat the S&P handily, and with less volatility.

The trader is the weakest link because he does not have complete confidence in what he is doing. This is often the case when a trader is learning a strategy that is not their own, no matter who's strategy it is. What you need to do is somehow make that strategy your OWN so that you can trust...

KP, one quick question for you...what is your trading EDGE? If you can't define your edge, then you've got no chance at success. Take some time off and conduct a ton of research. Develop a real edge, and then start trading again.

I think the biggest mistake most people make when they decide to start trading is that they approach it as a hobby instead of a business. To me, this explains why most people are unprofitable in the long run. Most professional traders, and I am referring to those that manage money, approach...

I often equate trading to golf. The parallels are uncanny. Golfers want to be able to hit the ball like Tiger Woods with just a few tweaks to their current swing. They will invest in all matter of training aids, dvds, lessons etc. When something doesn't work, they move onto the next big...

Why not set up a private fund from friends and family? If you keep it to a limited number of investors, you can avoid the full registration process with the SEC. You can then also charge a management fee and incentive fee, and make some more money from the operation. This is how many hedge...

The first mistake I see by the original poster is that he has no edge. You can't possibly become a successful trader if you don't know what your edge is before you put your capital to work. This is the biggest reason why most fail. Do yourself a favor, stop trading and start doing some hard...

Never up, never in