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Wednesday, January 20, 2016

rules are important

Hi readers

Yesterday for the first time in about 3 years I started seeing professional money being seriously stopped out of positions.
This is a wonderful thing as they are going to have to buy the market back later on to get back in.
The idea that money sits on the sidelines for more 60 days is crap..
No fund manager can sit on the sidelines while the market moves in  either direction.
Media spin out the crap to entertain the public.
If any fund manager has more than 5% allocated to cash they will quickly see his allocation taken away from them by either client or superior.
Not many will tolerate managers holding there money and charging 2% management fees.

Yesterday also I had a lot of fun.
I thought I'd help readers who trade the futures markets with astrological timing.
I believe it was
9 from Australia
3 from New Zealand
3 from United States
4 from Singapore

All did quiet well and made some good money.
I guess sometimes it's good to have a tutor around to help out, as trading is a very lonely game.
Yes Twitter is out there for all to communicate but sometimes people I guess fear asking question which to others would sound stupid but to them it's important.
End result everyone made money, some more than others .
But the objective was to help out and give confidence to those who need it in a skidish market.
Maybe next time will do it in Skype so it's instant, instead of emailing around .
Also I will charge for it and donate that to charities.
It was just an experiment
As I doubt that those involved donated anything.
Which is fine, it is what it is I guess.

The one thing I got out of it,is that not many have rules for trading .
I don't know if people just didn't want to express them but the feed back I got was there isn't any restraint to a trade, in the event it goes wrong.
This is vitally important if you want to survive and make money.
Think of it this way .
If you speed in a 60 zone 75 and get caught you'll pay a $200+ fine to the government for speeding.

In trading if you over trade or margin yourself beyond comfortable levels you'll loose money so why do it ..
There has to be some sort of guidelines which has to be followed.
What that is ,must be work out by you the trader.
I could post one out why would you want to follow it as it won't sit right with you.
Something to think about or you won't be lasting long in this game people.
Markets don't always agree with anything you do, wether it's astrology or technical or numerology.

Example last week I lost a bucket on the NQ trade.
Now if I did what some  readers do my account would be destroyed.
Trading is like a poker game you need first to survive and then make money.
Get it right and you can buy new cars weekly so to speak.
Rules are in place to protect you from making bad trades and to limit your losses.
Something to think about guys

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