The Art of Investment Trading
If you are having good results with your trading portfolio should you consider using the same techniques with your superannuation fund? What about calculating your stops? Do you do that differently with your super fund than you do with your trading fund?
Stuart: I appreciate where that person is coming from, but to me they are so different, two completely different aspects of investment trading. Probably the biggest difference between the two is the amount of money in both. I have a lot more money in my super fund than my day to day trading fund. The purpose of both those funds is so different.
Even though you wouldn't want to, if you did lose your trading fund, it probably wouldn't ruin you financially. Your superfund is different. It is more like a long term investment and the last thing you want to do is risk losing it. Since these funds are so different, they require totally different approaches when it comes to managing them. Actually, the size of your fund has a big impact upon how you handle it. Of course, the basics still apply such as cutting your losses and ramping up profits but you have to adapt the way you implement your strategies so you have the maximum amount of profits.
You want your superfund to continue to grow so that when you are able to finally tap into it, all of the money will be there and you will be financially secure.
The question was asked about setting stops differently. We all have the same rules of cutting losses and letting profits run, but the way we apply those rules across the different trading styles is very different. So of course I use very different stops in my super fund, and one wouldn't work for the other.
What about the method of calculation for your super fund? Would you use the same one that you use for your CFD trading fund? The width would be different of course, but is the method the same?
Once again, your superfund is handled differently. You probably want to use a technical stop for your short term trades and a volatility base for your super fund. Long term trading and short term trading need to be handled differently in order for the long term fund to be profitable over time and to meet your individual circumstances. - 23210
Stuart: I appreciate where that person is coming from, but to me they are so different, two completely different aspects of investment trading. Probably the biggest difference between the two is the amount of money in both. I have a lot more money in my super fund than my day to day trading fund. The purpose of both those funds is so different.
Even though you wouldn't want to, if you did lose your trading fund, it probably wouldn't ruin you financially. Your superfund is different. It is more like a long term investment and the last thing you want to do is risk losing it. Since these funds are so different, they require totally different approaches when it comes to managing them. Actually, the size of your fund has a big impact upon how you handle it. Of course, the basics still apply such as cutting your losses and ramping up profits but you have to adapt the way you implement your strategies so you have the maximum amount of profits.
You want your superfund to continue to grow so that when you are able to finally tap into it, all of the money will be there and you will be financially secure.
The question was asked about setting stops differently. We all have the same rules of cutting losses and letting profits run, but the way we apply those rules across the different trading styles is very different. So of course I use very different stops in my super fund, and one wouldn't work for the other.
What about the method of calculation for your super fund? Would you use the same one that you use for your CFD trading fund? The width would be different of course, but is the method the same?
Once again, your superfund is handled differently. You probably want to use a technical stop for your short term trades and a volatility base for your super fund. Long term trading and short term trading need to be handled differently in order for the long term fund to be profitable over time and to meet your individual circumstances. - 23210
posted by X - Men @ 2:03 AM
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