“Don’t care money” seems to me to be a useful concept for retail traders learning to trade.

Blitzjoker said:
One of the most useful concepts I took away from Al Brooks video course was the idea of “Don’t care money”.

He used the idea to illustrate a way of learning to trade properly using very small position sizes.

For example, when getting on board a bull trend, he generally recommends having a stop at the base of the trend initially. This can be a long way from the current price, and can be scarey for beginners if you are using reasonably large (for you) position sizes.

However, if you enter a tiny position, you have more chance of managing the position correctly, as the amount at risk is small enough for you to not care if your stop gets hit.

I am quite mean with trading, so my “don’t care money” size is indeed very small. MT4 allows me to trade at £0.10 per point on the SPX for example.

You will obviously never get rich betting like this, but more to the point, you will never get poor either. Brooks is quite correct in that following the rules properly is much easier if you are not seriously worried about the amount of money you are risking.

I prefer using very small amounts of real money to using a demo account because there is just enough riding on it that I want to get it right, and don’t cheat myself by thinking “Oh it’s just a demo; I would never have lost like that in a real account”. At the end of the day, you may still lose a little money, which is chastening enough to make you want to get it right next time.
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Hello Blitzjoker,

I tell you a quick story how "Don't care money" does have an advantage in trading.

About 4 years ago, I told a friend of mine about ES futures trading. This friend had a lot of don't care money and did not mind losing.

He knew nothing about ES trading or trading at all.

He asked what is the max contracts he can trade, I think I told him like 50 contracts.

He deposited $50,000 in the broker, and said tell me when to enter and he wanted to win.

I guess an entry on the chart. He bought, and held the position for a few minutes and made about $4500. Then we went out to eat and party. I ask him was he scared about losing the money.

His exact words was, "You can not have fun if worry about losing too much"
 
SimpleMeLike said:
Hello Blitzjoker,

I tell you a quick story how "Don't care money" does have an advantage in trading.

About 4 years ago, I told a friend of mine about ES futures trading. This friend had a lot of don't care money and did not mind losing.

He knew nothing about ES trading or trading at all.

He asked what is the max contracts he can trade, I think I told him like 50 contracts.

He deposited $50,000 in the broker, and said tell me when to enter and he wanted to win.

I guess an entry on the chart. He bought, and held the position for a few minutes and made about $4500. Then we went out to eat and party. I ask him was he scared about losing the money.

His exact words was, "You can not have fun if worry about losing too much"
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my guess is he ended up paying 4500.00 for that food and drink after all, and then some more.
 
VEGASDESERT said:
my guess is he ended up paying a lot more than 4500.00 for that food and drink.
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Hello VEGASDESERT,

lol, I forgot but it wasn't that much.

Interestingly, I ask him what he thinks about trading the ES in his spare time.

His exact words was "Man, Fuck that ES trading shit, I won based on luck, that trading shit is gambling because its not guaranteed you will make money, I do not invest in anything that is not guaranteed to win"

His exact words.
 
SimpleMeLike said:
Hello VEGASDESERT,

lol, I forgot but it wasn't that much.

Interestingly, I ask him what he thinks about trading the ES in his spare time.

His exact words was "Man, Fuck that ES trading shit, I won based on luck, that trading shit is gambling because its not guaranteed you will make money, I do not invest in anything that is not guaranteed to win"

His exact words.
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He did not catch the bug, good for him! lol.
 
Blitzjoker said:
I agree that you can never make much money doing this; that is not the point of it. Once you are making small amounts of money consistently well, because you know how to trade properly, you can then increase position size. It seems more sensible than going all-in before you know what you are doing.
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Hello Blitzjoker,

You are doing it right, start small and EARN the right to increase position size.
 
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