Comments on Articles # 03

I've tried to maximized profit in trading but always end up loosing and even loose all the profit I've gain..
I couldn't agree more to an article written by Chuck LeBeau (http://www.traderclub.com) about money management as one of the key factor to success trading (you can read the full article at Tradejuice.com, and the title is "Some Practical Thoughts About Money Management").
In this article, Chuck LeBeau gives a simple math-calculation illustration and I think it can pretty helpful for your trading approach or plan.

Comment on Article # 02

Being 4 years involve in future trading, I experienced both success and failure in manage money. I know that my experience is far too few compare to others who have been "ages" lurking around in the exchange... but like an old saying says that we are always in the learning phase...

Speaking of learning, I came a cross to day to another Joe Ross' (www.tradingeducators.com) article at the www.tradejuice.com, it's about "Manage Money"...
According to Joe, there are at least four categories of traders who attempt to manage money. There are probably other categories, but these are the the most common:

1. Those who successfully manage money for others but cannot manage their own account with any great degree of success because they are too careful with their own money, while they are more daring with the money of others.

2. Those who successfully manage money for others but cannot manage their own account with any great degree of success because they are too daring with their own money, while they are more careful with the money of others.

3. Those who successfully manage their own money but fail with managed money because they are too careful when managing money for others.

4. Those who successfully manage their own money but fail with managed money because they are too daring when managing money for others.

He also concluded that among these categories, none who successfully traded both managed accounts and their own accounts. There are some warnings and cautions that can be concluded.

To those of you who want to have your money managed, be aware that the individual success of any trader trading his/her own money is no guarantee that that person can successfully manage the money of others. It would seem to bear out the reality of placing managed money with a proven successful trader of managed money.

To those of you who want to manage money for others, be aware that successfully trading your own account is no guarantee that you will be able to successfully trade the account of other persons.

Failure in either of these situations is painful for all concerned! In fact, the pain can be so great as to prematurely end the trading hopes of either party.

Be very careful, because in both of these situations the result can be great personal pain. The pain may be both physical and mental, and can cause you to abort your trading career. I feel it is my duty to caution you about getting involved with managed money, whether you try to manage the money of others, or whether you want someone else to manage yours. The costs can be horrendous.

The responsibility of trading managed money can really wear you down. You may have to go for years without a vacation. You find yourself working late into the night, and working a significant portion of the weekends.

All work and no play is not a good thing for your trading career.

As I have experienced, managing money can be hard and harsh (.. :) ), and come to my thoughts that it's better if we stick to one "category" as mentioned by Joe Ross than attempting to cross over to another one... meaning that if one can't overcome his own emotion than, just do what he best do.. or what ever :)

Comment on article # 01

I've been at about 4 years invovled in trading, both FOREX and Future, but not until I read one of Joe Ross (www.tradingeducators.com) article entitled "Don’t Overtrade!" (you can read it a  complete article at www.tradejuice.com), then it comes to my senses that I'm not a mature trader yet..
At that point I realized that I too have been over trading, as matter of my trade frequency, while all this time I thought that over trade means that we use our equity more than it should be, not how often we use it.
Here is his advice which I quote from his article and I think it could be useful:
"The total commitment you make on any entry should be relative to a reasonable expectation of the profit potential for that trade. Each trade is different and must be weighed on its merits.
How do you know how many contracts to trade? Certainly you are in a pickle if you always have to trade in single lots. That is not to say that there are never times when a single lot is the right thing to do. It’s okay when you’re scalping , or trading options . However, wherever possible try to trade a least two contracts. You need one to cover costs, and the other to give you a profit.
If it's late in the day and you are a daytrader who normally does a five lot, perhaps you should use a smaller size due to the fact that the trade hasn't as much time to develop as one made earlier in the day."

Happy Trading

Daily Log # 04

Perhaps I should apologize to north-finance by publishing one of their article without permission.. but I never intended to use it for Comercial Use.
All I want is for others to read it and perhaps can gain something usefull out of it... But someone has remind me for my faulty deeds which I should have realize, and I thank for it.
And as my response, I delete the particular posting.
And again, Thank you for the warning spreadbetter.