day to day risk management of a trader

S

smallStops

Well each aspect has to be handled thoroughly.
After, "fixing the head", time to fix that once for all.
I might have three trading accounts.
A) One for 30% return and ridiculous risks.
B) And the other 10% account risk for 17% return
C) And third one 3% account risk for 5% return.
I am quiet lucky not to have need of the trading money for
my day to day life, and I could significantly upgrade
without needing it too. Getting initiated
to Catholic lifestyles, does make a difference.

I actually used to prefer the A), as it brings real emotional upsets.
C) really boring one.
B) I don't know the emotional impact of this type of money management.
 
smallStops said:
I might have three trading accounts.
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when people start talking about the emotions, for me it is a clear indication that nothing works, regardless of how many accounts they have

have just one account with a method that works, and you will forget about all the emotional aspects
 
qxr1011 said:
when people start talking about the emotions, for me it is a clear indication that nothing works, regardless of how many accounts they have

have just one account with a method that works, and you will forget about all the emotional aspects
More...

People have so many messed up lives, you'd be surprised. In my time of working with people, their upbringing can cause actual physical and mental pain of making money. As dumb as that sounds, they will sabotage themselves to lose as they have in their heads they are not worthy to have money. I usually then push them for hypnosis as once you have deep seated convictions of self worth, I can't help when it comes to sub-conscious. I can't imagine of having their life growing up but usually always strict religious upbringing of Thou shall give then receive. Sounds easy to forget emotional aspects but when you breath them, they rule your world, and it takes a great deal of work to help overcome people's belief.
 
qxr1011 said:
when people start talking about the emotions, for me it is a clear indication that nothing works, regardless of how many accounts they have

have just one account with a method that works, and you will forget about all the emotional aspects
More...

It would be easier indeed if that was so simple. I did not precise if the returns were
daily, weekly, quarterly or monthly.
So, as not to create "scandals" ( as people have different views on what is possible):

What would you prefer : cashing in 3,000$+/day on a 100,000$ account, and once in a while
blowing up ? ( could be A)
Or cashing in 5,000$ in the same account, in a year ( could be C) and having your co-trader
deciding to offer the profits to some people "in needs" , as it was an account to see what happens
in a conservative way.
Or trying to find the right balance ( could be B).
Now, you make money on option A,B,C globally. But then the emotions are different.

Thanks to the meditation and change of lifestyle, I am realising that I might prefer to take it easier,
but ,not soo "easy" as to look for tiny returns. Just now the C) option could be difficult emotionnally as the work ( number of tades)/efforts be perceived and experienced as disproportionate compared with option A.
 
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Handle123 said:
.. . As dumb as that sounds, they will sabotage themselves to lose ...
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This is actually one important aspect when it comes to how the profits evaporate.
From not feeling worthy of the profits, to finding trading profits similar "dirty money", to guilt because
one make in a day what the shop employee makes in a year, etc.

It looks like to me there are two things people neglect : psychology of trading, and risk management.
The only thing I have been explained lately is to find the risk management I am most comfortable with,
try healthier lifestyles, and find the risk management that fits it.

Now, I think many are obsessed about the strategy. And that is something I am not interested in.
 
TradeCat said:
Anybody with feelings and emotions is a loser. I go in, make my money and spend it all.
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For me, I give it all ( charity) as I have other planned a long time ago ( no silver spoon) income.
I am not into "hand to mouth" type of thing.

Can you tell me more about your money management?
 
Looks like the threat has attracted few "mosquitoes" mindset : bite and run away.
I am actually astonished there are so few stuff on money management. Looks like the
most is around Kelly formula concepts. Interesting.
 
I have a decent size account and for "staying in the game" I keep a daily loss limit and profit target in mind. Because trading is not my full time gig I usually use the ratio of 10% account risk for 17% return. Ive seen some guys trade for ticks here and there but why even entertain trading if that's what your going to do the whole time.
 
Risk management is a tricky aspect.

I assume that those that go for one tick the whole time are scalpers: this demands a particular set of skills, and mindset.
 
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