Tuesday, November 07, 2006

Betting or Trading?

Your Trading Style Poll!

I recently came across an interesting conversation on EliteTrader.
The thread was Traders Make Money.

The interesting topic was if you're 95% sure of a trade in your favor, why not bet 95% of your portfolio's value?

Many combatting topic's arose such as: young traders can afford risk, experienced traders called it suicide, immoral traders said insider trading is good, define "killing in the market", name of the game is "capital conservation", going "All-In" works every single time but once, etc.

One trader noted that large gains can be made without using leverage:

"Catch a 2.00 move in soybeans with 2 contracts and thats $20k. Learn to take 30 ticks/week on zb. $8k/month on 2 contracts. etc. etc.. add these up and you'll be able to increase your size without overleveraging before you know it."

He stated that you don't have to risk 95% all the time, you just need great trading skills, analytical expertise, and specialize in an area of the market in which you've found an edge, and with that you can make a small forture without the desperate bets.
Good Thinking!

Today's P/L = $731.70
AKAM & BTU are some of my regular intra-day scalps as they fluctuate anywhere from 3-5% per day from low to high.

1 comment:

Anonymous said...

keep up the good work, enjoy reading.