Is Money Management the "Holy Grail"?

You are truly a piece of work


Majority of all traders who try it fail
Of the remaining – only a very few make really good money

And you believe everyone can become a master – of their universe


World don’t work that way – some folks just don’t have, and will never have – the psychological make up to trade

That's why they are teachers, police / fire fighters, military, mechanics... etc..etc...and the list goes on


And I never said anything about madoff




I’m talking about John Q, and Jane Q – Public – just normal everyday folks, who do the work… so we can sit here and trade..

They invest their money so they’ll have something to retire on – and now it’s pretty much down the drain

Curious how one goes from market’s upward bias to getting information from books

And the truth never hurts – it’s just the truth
 
I agree with Redneck Trader 100%. Your trading method must produce certain results but money management keep you in the game when even placing "correct" trades go wrong for you. I guess it all boils down to let your winners runs and keep your loses small.
 
Quote from Redneck trader:

You are truly a piece of work


Majority of all traders who try it fail
Of the remaining – only a very few make really good money

And you believe everyone can become a master – of their universe


World don’t work that way – some folks just don’t have, and will never have – the psychological make up to trade

That's why they are teachers, police / fire fighters, military, mechanics... etc..etc...and the list goes on


And I never said anything about madoff




I’m talking about John Q, and Jane Q – Public – just normal everyday folks, who do the work… so we can sit here and trade..

They invest their money so they’ll have something to retire on – and now it’s pretty much down the drain

Curious how one goes from market’s upward bias to getting information from books

And the truth never hurts – it’s just the truth
More...

Nah,

Not a piece of work, just young, under 35.

Just as young teen aged men think they are physically indestructable, those too young to have lived through a complete business cycle think they are fiscally indestructable.

Definition of living through a complete business cycle: the trader has traded through at least one recession and one bubble.

Hint: Does the dow chart show a depression right now? Are we making higher highs/lows or lower highs/lows? Timely action this year might make some careers.
 
Quote from oddiduro:

Nah,

Not a piece of work, just young, under 35.

Just as young teen aged men think they are physically indestructable, those too young to have lived through a complete business cycle think they are fiscally indestructable.

Definition of living through a complete business cycle: the trader has traded through at least one recession and one bubble.
More...

Good Point Sir

Thank You
 
Quote from Redneck trader:

You are truly a piece of work


Majority of all traders who try it fail
Of the remaining � only a very few make really good money

And you believe everyone can become a master � of their universe


World don�t work that way � some folks just don�t have, and will never have � the psychological make up to trade

That's why they are teachers, police / fire fighters, military, mechanics... etc..etc...and the list goes on


And I never said anything about madoff




I�m talking about John Q, and Jane Q � Public � just normal everyday folks, who do the work� so we can sit here and trade..

They invest their money so they�ll have something to retire on � and now it�s pretty much down the drain

Curious how one goes from market�s upward bias to getting information from books

And the truth never hurts � it�s just the truth
More...

You are making assumptions based on your experiences!

Any person with a half brain can make money trading, if they but know how to do it correctly!

As for teaching, and all that goes with it, you have actually answered the reason as to why so many fail!

The truth always hurts!
 
Quote from oddiduro:

Nah,

Not a piece of work, just young, under 35.

Just as young teen aged men think they are physically indestructable, those too young to have lived through a complete business cycle think they are fiscally indestructable.

Definition of living through a complete business cycle: the trader has traded through at least one recession and one bubble.

Hint: Does the dow chart show a depression right now? Are we making higher highs/lows or lower highs/lows? Timely action this year might make some careers.
More...

More assumptions!

Investing is a mugs game, daytrading is a gamblers game.

Learn how to gamble correctly and you will make money, it really is that simple, but yet so hard for all the highly "educated" people in the world.

It makes you think, does it not!
 
Quote from hadTough life:

MM is not the grail

but it helps

Grail is supposedly some sort of CUP :)
More...

100% correct.

All the MM in the world is of no use unless you can make money.

Ever heard of the drip dry theory?
 
Quote from nysestocks:

You are making assumptions based on your experiences!

Any person with a half brain can make money trading, if they but know how to do it correctly!

As for teaching, and all that goes with it, you have actually answered the reason as to why so many fail!

The truth always hurts!
More...


And what assupmtions would that be pray tell


BTW - You assume the truth always hurts
Mine is the truth is always the truth - period
 
Quote from Redneck trader:

And what assupmtions would that be pray tell


BTW - You assume the truth always hurts
Mine is the truth is always the truth - period
More...
Before I begin I think RedNeck Trader deserves kudos for politeness. If only my words were so tame in addressing others…

Money management is not the “Holy Grail” but rather a business tool. However, I use money management like the “Holey Grail”. This sounds contradictory but it is not. I will explain why.

When I wrote my first trading plan about 12 years ago it turned out to be a failure. I could not adhere to all of the articles in the plan that was copied from numerous authors of time. This included many author’s recommendations of the time about money management.

When I finally achieved a working plan about 6 year later I discovered most of the trading mantras from these authors had been discarded. Many of the classic methods I implement had failed me. This is when the light bulb went on.

A traders plan is an individual business plan. I may include or discard what works for me. In most cases this means writing in my own words what a “money management” concept means. If money management does not work for me and I can trade with a fixed dollar stop of $827 a trade why not use it. As long as I accept the risks and I make a profit than this is satisfactory.

If my plan fails me then I go back to the gurus concepts as models to rebuild my plan. But now I build it my way since I accept more readily the consequences.
 
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