"When you see that trading is done, not by consent, but by compulsion - when you see that in order to produce, you need to obtain permission from men who produce nothing - when you see that money is flowing to those who deal, not in goods, but in favors - when you see that men get richer by graft and by pull than by work, and your laws don't protect you against them, but protect them against you - when you see corruption being rewarded and honesty becoming a self-sacrifice - you may know that your society is doomed" - Ayn Rand
Had a lot of fun during my return to BlogTV this Friday.
First, we talked about my outlook regarding 2009, with the new changes to the tax structure and the budget - and my reactions to these new 'incentives' (yeah, that's sarchasm) ...
(Videos Included. If you're seeing this entry elsewhere and cannot see the Video? Click this link to view the entry ...)
Had a lot of fun during my return to BlogTV this Friday.
First, we talked about my outlook regarding 2009, with the new changes to the tax structure and the budget - and my reactions to these new 'incentives' (yeah, that's sarchasm) ...
(Videos Included. If you're seeing this entry elsewhere and cannot see the Video? Click this link to view the entry ...)
And then the discussion turned once again to charities. It was also getting to be a bit of a downer discussing all the bad news, so I decided to have some GOOD news on the show ...
I'll try to have the instructions to getting connected to the Ventrilo Server up by tomorrow.
We'll see everyone later today with the the "Week in Review" podcast, and my vlog on the Challenge Project for 2009.
* * *
Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.
3 comments:
Hi Dan!
This is actually a question about your money management videos:
You discuss in detail how to handle losing money, but what if you are successful? For example (I live in South Africa, and this example is based on South African Rand (R)):
Month 1: I deposit R300 and risk R100. My trade is profitable, and I end month 1 with R500. (Risk:Reward = 1:2).
In month 2, I again deposit R300. Do I now risk R100, or R200? That is, do I risk both the current month's money, as well as the previous month's money?
Heyya Smittie!
Actually, that's a very good question.
Some folks who follow good money management? They always risk a set % of their account. No matter what their account size? They risk 2% of their account. As it grows, so will be the amount they risk.
For the low funded? What I recommend is to have pre-defined 'ranges'.
In other words, lets say your account is R400.00.
You risk the same amount, until your account is to about R2500. Let's say your risk tolerance, or how much you feel comfortable risking? Is R100 of risk.
Then from R2,500 to R5,000? You risk R150.
Then from R5,000 to R10,000? You risk R200.
See what I mean? You have predefined ranges of how much you'll risk, in each "range".
I can tell ya, the trick is going to be in the beginning. Once you're past the first few 'ranges' - you'll find the sailing much smoother.
You'll see I'm doing that for the Challenge Project. From $370 to $1,100? I've kept my risk to $90 per trade, and probably will continue to do so, until I'm to $2,000 or $2,500.
I hope this helps Smittie, and it's good hearing from you again!
Regards,
Dan
Crossing 89 now!!!!
http://quote.barchart.com/quote.asp?sym=DXM9&code=BSTK
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