The Million $$$ Quest 2006

Expecting the Unexpected:

Coming off a dominating performance at the British Open, looking to win a third major in a season for the second time in his career, there was never a bigger lock. Offered Woods or the field, many took Woods.

..but he flunked..

Enormously Humongous Winners…

Humongous Winners are not possible if you are not willing to risk a lot of money. In order to have huge winners, you need to have a huge account.

That is my goal, to build my teenie tiny account up where I could risk a lot in one single trade, and thus have Enormously Humongous Winners.

In order to build up an account, you have to build it up slowly and surely. You have to stay consistent and on target without taking excessive amounts of risk no matter how suitable the situation is to load up and make a killing.

You absolutely cannot risk more than 2% of your equity on any single trade. Less than 2% if possible is preffered.

You have to be patient. You have to only take trades that meet all your qualifications.
 
Paul Tudor Jones is the most conservative investor on Earth.

I think I am the single most conservative investor on earth in the sense that I absolutely hate losing money. My grandfather told me at a very early age that you are only worth what you can write a check for tomorrow, so the concept of having my net worth tied up in a stock a la Bill Gates, though God almighty it would be a great problem to have, it would be something that’s just anathema to me and that’s one reason that I’ve always liked the futures market so much, because you can generally get liquid and be in cash in literally the space of a few minutes. So that always appealed to me because I could always be liquid very quickly if I wanted to. I’d say that my investment philosophy is that I don’t take a lot of risk, I look for opportunities with tremendously skewed reward-risk opportunities. Don’t ever let them get into your pocket - that means there’s no reason to leverage substantially. There’s no reason to take substantial amounts of financial risk ever, because you should always be able to find something where you can skew the reward risk relationship so greatly in your favor that you can take a variety of small investments with great reward risk opportunities that should give you minimum draw down pain and maximum upside opportunities.

Risk Control:
Ninety-percent of any great trader is going to be the risk control.

Q: Are you more naturally bearish or bullish?
A: Bearish, I think. I would have difficulty asking anyone to pay 10 or 20 times earnings for my earnings capability for the rest of my life. I would think you’re crazy to do that even though it might be a great deal, so the concept of paying one-hundred-and-something times earnings for any company for me is just anathema. Having said that, at the end of the day, your job is to buy what goes up and to sell what goes down so really who gives a damn about PE’s? If it’s going up you’re supposed to be long it. But there’s no question that it’s just easier for me to leverage with some degree of conviction the short side of some markets.

Q: Warren Buffet
A: His aversion to paying taxes made him a great investor.
 
Slow & Sure wins the race

Build up equity slowly and surely without risking too much on any single one of the trades.

Never risk more than 2% of you equity on any trade. With more % of equity at risk, your emotions become uncontrollable and you end up losing a lot more %s than what you wanted to risk. Keep the risk on each and single trade so that you can keep on taking even 20 trades in a row, or even more and keep your emotion out of each and every trade.

Being emotional about a trade makes you impulsive, indecisive and leaves you incapable of forming even a single coherent trading decision.

You keep emotion out of a trade by not risking more than what your supposed stop is. Losing a dollar more than your risk equity on a single trade is like getting drunk, and waking up in the gutter with a head ache. You would never do that, so you shouldn’t do that what is equivalent of that in trading either.
 
Goals

2006: $ 100,000
2007: $ 300,000
2008: $ 600,000


When you give a trade a bit more room than your business man's risk, it is because you don't want to get stopped out. You don't want to get stopped out because it is a big loss for you. With a little bit of room the loss gets bigger and bigger and it is an even bigger loss for you to take and you end up moving the stop.

Holding onto a trade beyond your business man's risk means you are out of control of yourself and the market is controlling you and your actions. When you get to this point, this is when you are most vulnerable to greed, fear, hope, uncertainty etc. Thus, your utmost goal in trading is to stay in control of yourself. You stay in control of yourself by staying in the safe zone. And the safe zone is when you stay within your own predefined risk parameters.

Thus, I must never eclipse my predefined stop loss point.
 
I used to trade BIG, 90-95% winners everday etc...

I am cleaning my saved up things on my computer, and here is my daily totals for 10/6/2005...

2240589830059272304sypipU_fs.jpg
 
Ripley have u any idea about chat room where ther are profesional who make the day trading call
Do u have any idea about it is it good bad rip off etc
Can they be usefull - ???
 
I tried all the trading rooms pretty much out there.

I think.. eventhough some chatrooms does help the newbie out, I think it would be more benefitial for the person to go at it alone. Then again, it is just my view point.
 
Quote from ksonsinc:

Hey ripley some one suggested me this on
they said it is preety good
do u have any idea about it
http://www.millennium-traders.com/
More...

I went to http://www.millennium-traders.com/performance/stp.aspx to read about their swing trade performance.

Funny thing was, they gave exits as the high or low for the week. Basically they dont give exits, they just calculated how much money you could have made in hindsight if you exited at the high or low depending on their call of long or short.

Very misleading. I would avoid


I think a better place would be http://www.lbrgroup.com/. I am not associated in anyway with LBR. Just heard good things and she seems legit.
 
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