The Recipe to Reduce the Risk.

[jk90029]

Now I think a 5 year index holding periode is a fine one. But I don't want to lose 5 years of active trading for a mere 50% compounded returns. At least, not now.

If your return is ONLY above annual 12% compounded, then your is almost same as Buffets.
Probably it is one of few world's best record.

50% for 5 years is same as less than annual 10% compounded.

 

[K-Pia]

I mean that we "DID NOT LOSE AT ALL", if our account is down 50% during the time of 50% down of index. It happened in 2008.

Furthermore, when index is up 50% and if our account is up 50%, then we "DID NOT WIN AT ALL". It is since stock market is zero-sum.

Of course, when index is up 50% and if our account is up 60%, then we "WON ONLY 10%". / Those are my PERSONAL proposition, believe or not.

Aha. So if the market is down 100% and that you've got a margin call that blow you up then you DID NOT LOSE AT ALL ? Because you didn't beat the index ? Mmmh Ok. Good luck.

 

[jk90029]

Aha. So if the market is down 100% and that you've got a margin call that blow you up then you DID NOT LOSE AT ALL ? Because you didn't beat the index ? Mmmh Ok. Good luck.

Of course, under the above PERSONAL proposition, I should never use margin trading, always cash BUY.
Please recall that index was NEVER down 100%.

 

[jk90029]

If your return is ONLY above annual 12% compounded, then your is almost same as Buffets.
Probably it is one of few world's best record.

50% for 5 years is same as less than annual 10% compounded.
Precisely annual rate is 8.447%, by (1+x)^5=1.5 and exp((1/5)*log(1.5)) = 1.084472

 

[Handle123]

In that case, would it be fair to say that most of what you write should be skimmed through since you would not possibly reveal a game changer?

There are some patterns I would not reveal as for me they are close to HFT for me.
As for your remarks, should they be read at all?

 

[FreakofNature]

There are some patterns I would not reveal as for me they are close to HFT for me.
As for your remarks, should they be read at all?

"We will see, said the blind man, to his deaf wife."

 

[Herbert]

Forex traders must always be patient and wise when making a decision to increase their trading size/risk. Do not ever make a hasty decision to power into a trade when the price just seems to be taking off like a rocket. Maintain your discipline and your money management!

 

[Jamie J.]

Forex traders must always be patient and wise when making a decision to increase their trading size/risk. Do not ever make a hasty decision to power into a trade when the price just seems to be taking off like a rocket. Maintain your discipline and your money management!

Generally speaking, it's important to keep a control of emotions? This is the key to a successful deal?

 

[Hafizmd]

Generally speaking, it's important to keep a control of emotions? This is the key to a successful deal?

Everyday self-discipline is the key. No one could do this except the trader himself.

 

[Jamie J.]

Everyday self-discipline is the key. No one could do this except the trader himself.

It's true. But not everything depends on it. Everyone has a certain "master card".