Money management - the holy grail

Quote from Zr1Trader:

Very cool BCE,

Thank you for sharing your thoughts.

See folks not every trader is an asshole that just wants to drive up the price of gas lol.

Robinhood is a great thing.


OILfxpro,

MM, yes it's great, but you need positive expectancy on top of commish and slippage. MM is just an important piece of the puzzle. It isn't EVERYTHING.


You make it seem like it's so easy to overcome vig and get a 51% system at 1:1 or better. Easier said than done my friend. Vig is the invisible hand especially the lower timeframe you trade. Longer timeframes, vig isn't as much of an issue.
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robinhood is cool if you are the one who decides who to steal from. If you always steal from the rich, then pretty soon the rat learns it's a bitch to be rich.

I like the torah, "Thou halt not steal" If you want to get into that new testament crap then you can have a war over who we should steal from.
 
Quote from oldtime:

robinhood is cool if you are the one who decides who to steal from. If you always steal from the rich, then pretty soon the rat learns it's a bitch to be rich.

I like the torah, "Thou halt not steal" If you want to get into that new testament crap then you can have a war over who we should steal from.
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Robin hood is an organization. They don't steal from anyone. I can understand your confusion from "robinhood" the story where he steals from rich and give to poor.

"Jones is the founder of the Robin Hood Foundation, a philanthropic organization mainly backed by hedge fund operators. He founded and was the Chairman of the Board of the Excellence Charter School, the country's first all-boys charter school, located in the Bedford Stuyvesant neighborhood of Brooklyn, New York. He founded and chaired the Bedford Stuyvesant I Have A Dream Foundation, which puts local students in collegesz'
 
Quote from Zr1Trader:

Robin hood is an organization. They don't steal from anyone. I can understand your confusion from "robinhood" the story where he steals from rich and give to poor.

"Jones is the founder of the Robin Hood Foundation, a philanthropic organization mainly backed by hedge fund operators. He founded and was the Chairman of the Board of the Excellence Charter School, the country's first all-boys charter school, located in the Bedford Stuyvesant neighborhood of Brooklyn, New York. He founded and chaired the Bedford Stuyvesant I Have A Dream Foundation, which puts local students in collegesz'
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well, actually I like Robin Hood and didn't care much for the Sherriff of Nottingham, but stealing is never a good long term idea. otherwise, yes you are correct, I was confused, I didn't know they were giving their own money
 
Quote from oldtime:

I'm not the house, I already have the spread and commissions against me. My odds at the market are about the same or worse than my odds against me at the crap table. The difference is the trend or the chop. Plus I have the option of betting who will win and who will lose, and how much they will bet. Most of the time the market chops, and I can bet just like any crap shooter and eventually lose over time, but when it does finally trend, it can trend longer than you can roll sevens and avoid them to make your point.
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Have you a simple answer on the mm of a casino owner , and how do traders compare with their 2%?

Does any one know this simple answer?

http://www.swing-trade-stocks.com/money-management.html

You are all going round and round in circles.
 
Quote from oldtime:

I know, But I tried, no I don't know the answer, but I'm willing to bet it is simple
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Let us assume there are 150 gamblers in the casino , each with $100 to bet .These are random numbers.Every hour 50 betters leave.

The casino has annual profits of $10m and capital of $100m.
 
Quote from intradaybill:

This is a fallacious statement. "System" already includes money management. There is no such a thing as a "system" without money management.

Money management is a set of rules to prevent ruin and maybe to inrease returns. Money management without an edge of some kind is useless.

I think you are wasting your time with trading. So do the others here who believe 1% win, etc. Just do your homework and stop worrying about the "others". Exchanges were setup so you never know who the others are.
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The market is efficient and edges are regularly eroded , there are thousands of highly sophisticated algorithms , and it is very few traders who have an edge.

95 % plus traders lose , it is a well known fact.

Sound sophisticated money management can improve results.Money management and position sizing can improve profitability , if applied appropriately to the following

80 % of trend on 1 minute charts fail on longer time frames.

Technical analysis is junk science , humans are not good at processing good clean information let alone voodoo science.

Traders are highly over leveraged in their money management , compared to casinos and their risk reward.Traders are encouraged to trade like a casino.

Trading is about probabilities with loads of false signals

http://www.elitetrader.com/vb/showthread.php?s=&threadid=234519&perpage=6&pagenumber=1

Betting the unknown outcome is against psyche

http://www.elitetrader.com/vb/showthread.php?s=&threadid=236978&perpage=6&pagenumber=1


The main problem with traders is their money management , it does not cater for the above fallacies of trading.Money management is the holy grail ,it is applied inappropriately to trading , and most et ers are deluded.
 
Quote from oilfxpro:

The main problem with traders is their money management , it does not cater for the above fallacies of trading.Money management is the holy grail ,it is applied inappropriately to trading , and most et ers are deluded.
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It is one thing to say that traders do not exercise good noney management and another completely different thing to say that money management is the holy grail. It is a fallacious implication doing that.

Most of the same traders will lose even with good money management. Their methods are flawed.

For making money you need both the edge and the money management. Teaching just money management to people is the easy route to deceiving them ans selling them hopes and dreams. It is like teaching someone how to fly a plane at 35,000 feet without teaching him how to take off and land.
 
with perfect money management (no mistakes) you should be able to breakeven minus the spread and commissions

add to that random entries

add to that random exits

add to that random additions

add to that random subtractions

and over time, you should break even minus the spread and commissions

10% of the time, override the random with something you think looks better than random (that's what I call "reading the market")
 
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