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ALSI Trades


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#26721 Sunesis

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Posted 19 November 2013 - 11:50 AM

Money Management (when trading) is simple:

Do not expose more than 2 – 3% of your trading on any given trade. So if your trade flops, do not lose more than the 2-3%.

 

The more difficult part is your trading strategy (regime and discipline). In theory, using the above Money Management strategy, will allow you to never lose all of your trading capital, BUT there will come a time when the money remaining (after many losing trades with little to no winning trades), you cannot physically adhere to the Money Management strategy anymore. So the goal is to balance your preservation strategy for money management with your growth strategy (trading strategy) for wining trades. It is a double-sided ethos.

 

Example: R100k trading account. Do not risk more than 2% per trade, thus a trade may never incur a loss in excess of R2k. This leaves you with trading a single Mini or 2 x Micro contract(s). Your trading strategy will be better if you allow a couple of 100 points leeway, so now you are left with trading 2 Micro contracts on ALSI (assuming IG) of which you will not risk / incur more than 500 points loss (a healthy margin in current market if you ask me).

 

If it is not clear, money management (how much and at what risk) is one side of the formula, the other is your actual trading strategy(when, how long and in which direction).

Very good explaination


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#26722 Plasma

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Posted 19 November 2013 - 11:48 AM

Money Management (when trading) is simple:
Do not expose more than 2 – 3% of your trading on any given trade. So if your trade flops, do not lose more than the 2-3%.

The more difficult part is your trading strategy (regime and discipline). In theory, using the above Money Management strategy, will allow you to never lose all of your trading capital, BUT there will come a time when the money remaining (after many losing trades with little to no winning trades), you cannot physically adhere to the Money Management strategy anymore. So the goal is to balance your preservation strategy for money management with your growth strategy (trading strategy) for wining trades. It is a double-sided ethos.

Example: R100k trading account. Do not risk more than 2% per trade, thus a trade may never incur a loss in excess of R2k. This leaves you with trading a single Mini or 2 x Micro contract(s). Your trading strategy will be better if you allow a couple of 100 points leeway, so now you are left with trading 2 Micro contracts on ALSI (assuming IG) of which you will not risk / incur more than 500 points loss (a healthy margin in current market if you ask me).

If it is not clear, money management (how much and at what risk) is one side of the formula, the other is your actual trading strategy(when, how long and in which direction).


And also I know it's a broad question and many opinions, but what's the best way to money manage?


Ahh...the perma bear is back ;)
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The first goal is to ensure survival – avoid the risks that can empty your account and put you out of the trading business.  :)


#26723 Sunesis

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Posted 19 November 2013 - 11:48 AM

Just a question, I'm trying to learn and protect myself. Over exposed unfortunately. With the majority of markets down, and the U.S due to recent highs possibly opening on the down do you think we could go below the 39800 level? And also I know it's a broad question and many opinions, but what's the best way to money manage?

1st is to never loose more than 3% of your account on a trade, maximum is 10%. The best way is to have a lot of different instruments to trade, because they don't all go up or down at the same time. 

Trade Bonds,Gold,Oil,Forex and different indices.

 

Today the Heng Seng went up, but top40 is down. Nikkei can go up and Dow can go down. Only on a broad based sell off, markets go down at the same time. If today was a broad based sell off, the Chinese stock market would have not went up.

 

Money management equals knowledge of the global market, so you know were to put your money.

 

Study different markets to diversify your money, that;s also good money management.


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#26724 Lekkerry

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Posted 19 November 2013 - 11:42 AM

Money Management (when trading) is simple:

Do not expose more than 2 – 3% of your trading on any given trade. So if your trade flops, do not lose more than the 2-3%.

 

The more difficult part is your trading strategy (regime and discipline). In theory, using the above Money Management strategy, will allow you to never lose all of your trading capital, BUT there will come a time when the money remaining (after many losing trades with little to no winning trades), you cannot physically adhere to the Money Management strategy anymore. So the goal is to balance your preservation strategy for money management with your growth strategy (trading strategy) for wining trades. It is a double-sided ethos.

 

Example: R100k trading account. Do not risk more than 2% per trade, thus a trade may never incur a loss in excess of R2k. This leaves you with trading a single Mini or 2 x Micro contract(s). Your trading strategy will be better if you allow a couple of 100 points leeway, so now you are left with trading 2 Micro contracts on ALSI (assuming IG) of which you will not risk / incur more than 500 points loss (a healthy margin in current market if you ask me).

 

If it is not clear, money management (how much and at what risk) is one side of the formula, the other is your actual trading strategy(when, how long and in which direction).

 

And also I know it's a broad question and many opinions, but what's the best way to money manage?


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From your perspective, Lekkerry is faceless and to a degree nameless, so any opinions expressed are just that, opinions from someone on the Internet  :D


#26725 CPvanWyk

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Posted 19 November 2013 - 11:27 AM

Long 40350 t/p 40515 and 40630 on futuresAttached File  alsi.pdf   70.62KB   19 downloads


Edited by CPvanWyk, 19 November 2013 - 11:30 AM.

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#26726 Django

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Posted 19 November 2013 - 11:26 AM

Just a question, I'm trying to learn and protect myself. Over exposed unfortunately. With the majority of markets down, and the U.S due to recent highs possibly opening on the down do you think we could go below the 39800 level? And also I know it's a broad question and many opinions, but what's the best way to money manage?
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#26727 CPvanWyk

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Posted 19 November 2013 - 11:24 AM

FTSE siting on support line where hourly break happpend. If it goes up from there i guess it will be good for our markets if the rand does not gain to much strengh.

 

 

Attached Files

  • Attached File  ftse.pdf   16.67KB   16 downloads

Edited by CPvanWyk, 19 November 2013 - 11:28 AM.

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#26728 Sunesis

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Posted 19 November 2013 - 11:11 AM

S,

 

I really admire your positive attitude!

I just have a question for the analysts following, which obviously includes you...

 

The variables and fundamentals I am taking into account at the moment is

 

1. SA futures on investing.com (some differ..)

2. S&P futures

3. USD/ZAR

 

All of those look very red... The variables that have not been taken into account yet is the German economic sentiment (only because it has 3 bulls..) and the speeches later this afternoon.

 

Are you only banking on favourable data or are there other technical factors you take into account.

 

The "buy the dip" strategy has been working very well for me lately but I feel like its nothing more than a psychological thing.. 

 

I am definitely not trying to criticize anyone, because my knowledge is way too limited..

 

Thanks!! 

I take a look at the 5 top companies which actually move the Top40. BHP,NPN,CFR,SAB,BAT

 

All this companies are still above their key supports.

Top40 still above 39800

 

Nobody knows what's going to happen in the markets. But everybody has their own throw in the towel levels based on their trading behavior,phycology and money management.

 

The Rand has been gaining strenght lately, that's why our big cap stocks took a breather. But now the USD/ZAR is sitting on support. 

 

Since we are a global economy, the S&P hit 1800 round number yesterday. So it is also taking a breather before Santa rally.

All that's happening in the markets now is normal. The 39800-40600 range continues. Bulls will revise thier positons once we close below 39800 and hold. Bears will revise their shorts once we are above 40600 and hold. Its a tug war now.

 

Don't forget that S&P can move down, and top40 can stand still.

 

Yes stocks are in a bubble, but Grandma Yellen does not care. She even said the markets wont hold her hostage.

Draghi said he will do whatever it takes.

 

The comes a time in your life when you have to accept that things change. Markets are moved by central banks these days, not fundamentals.

Those who are still looking at PE levels and fundamentals are the ones who have been getting tanked since 2009.

 

Everyday they sing the same song, "It's going to drop" has been their favorite song since 2009. Its maybe their hit single.

 

We all know it's going to drop someday, but for now its not.

 

Keep buying.

 

Viva La Bull :P  :P  :P  :P  :P


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No profession requires more hard work, intelligence, patience, and mental discipline than..speculation.


#26729 davidp13

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Posted 19 November 2013 - 11:09 AM

Im waiting for the hour graph to turn convincingly. I might loose out on some profit, but learnt my lesson last week.
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#26730 gringots

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Posted 19 November 2013 - 11:01 AM

long almi 40304


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"Attitude produces better overall results than analysis or technique, of course the ideal situation is to have both, but you really don't need both, because if you have the right attitude the right mindset then everything else about trading will be relatively easy even simple and certainly a lot more fun." - Mark Douglas, Trading in the Zone.

 

Don't listen to me, I'm a market Rookie.

 


#26731 Beorn

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Posted 19 November 2013 - 10:55 AM

I said I will only follow the trend from now,

So I have broken my own rule.

 

All info is priced into the market, so maybe there are some insiders out there that know something we dont know yet, and they are selling causing the price drop.

So, in other words, the only way we will know what the insiders know, is to follow the trend.

IMO


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Alsi future

 

I only post my views, not advice


#26732 Beorn

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Posted 19 November 2013 - 10:49 AM

Taken a small long @ 40230

 

Sorry for the post fact post, but was looking @ screen closely waiting for 40200 to hit.

I still have a buy order in @ that level.


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Alsi future

 

I only post my views, not advice


#26733 Redeemer

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Posted 19 November 2013 - 10:49 AM

Can't resist...this is too appetising...1st long @ 40091. Looking to add as she goes down.


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#26734 Jonker

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Posted 19 November 2013 - 10:45 AM

Last long 40160

S,

 

I really admire your positive attitude!

I just have a question for the analysts following, which obviously includes you...

 

The variables and fundamentals I am taking into account at the moment is

 

1. SA futures on investing.com (some differ..)

2. S&P futures

3. USD/ZAR

 

All of those look very red... The variables that have not been taken into account yet is the German economic sentiment (only because it has 3 bulls..) and the speeches later this afternoon.

 

Are you only banking on favourable data or are there other technical factors you take into account.

 

The "buy the dip" strategy has been working very well for me lately but I feel like its nothing more than a psychological thing.. 

 

I am definitely not trying to criticize anyone, because my knowledge is way too limited..

 

Thanks!! 


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#26735 davidp13

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Posted 19 November 2013 - 10:44 AM

Fun...
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I find trading like body surfing, catch the right one and you will make it all the way to the beach.


#26736 Sunesis

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Posted 19 November 2013 - 10:35 AM

Last long 40160


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No profession requires more hard work, intelligence, patience, and mental discipline than..speculation.


#26737 Sunesis

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Posted 19 November 2013 - 10:22 AM

After the dust settles, we'll be going home.

Hang on to the Bulls Horn

 

This is how a bull ride feels like.


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No profession requires more hard work, intelligence, patience, and mental discipline than..speculation.


#26738 Beorn

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Posted 19 November 2013 - 10:17 AM

Nice one!

 

A

 

Thanks,

Closed short @ 40390

Might be early, but why be greedy.


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Alsi future

 

I only post my views, not advice


#26739 Argento

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Posted 19 November 2013 - 10:16 AM

O'

I thought you wanted to go short but got caught up in the chatter.

I am still short, waiting to go long.

Nice one!

 

A


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#26740 Beorn

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Posted 19 November 2013 - 10:11 AM

If we drop to +- 40200. I'm closing short and going long.

That is if we dont change direction before 40200


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Alsi future

 

I only post my views, not advice






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