Quote from Laissez Faire:
Corrected.
Of course. Nothing wrong with these rules and the trader is free to disregard them after earning a cushion of $5000 dollars, right? Show that you can manage risk and after showing you can earn money, do as you please?
I honestly don`t see the problem or what people are bitching about. If people want to average down and lose, they can do it with their own money.
The reason you don`t agree with or fully understand rule number 3, is because ScalperJoe is quoting it WRONG.
It states that if you`re up $500 (or more) or $1000 (or more), depending on account size, you will STOP trading if your equity goes below the 50% high water mark.
Example: I`m up $700 dollars on the minimum account, but if I start piling up losers, I will quit trading if I go below $350. However, I can go from $700 down to $500 and then up to $1000, as an example.
It`s a defensive money management rule and I`m sure I`m not the only one who`s been up a great deal of money for the day only to waste it away and have a red day. I think the rule makes a lot of sense, but again, traders can disregard it after they`ve proven themselves, but most would probably be better off following it.
Hell, I should get a free combine for all the time I spent clearing up the rules for TST. You reading Michael?
Not my fault that people don`t know how to read or assimilate information.
Quote from nazzdack:
1) 1, 2, 4 & 5 should already be incorporated into one's trading method. They shouldn't be thought of as additional guidelines.
2) I don't agree with 3. I'm not sure if I fully understand the first part of it.
