some more on how view money and its management....
WW table of loss/recovery..
% Loss initial capital-----------------------------% profit required to Recover
5--------------------------------------------------------------------------5.3
10-------------------------------------------------------------------------11.1
15-------------------------------------------------------------------------17.6
20-------------------------------------------------------------------------25
25-------------------------------------------------------------------------33.3
30-------------------------------------------------------------------------42.9
35-------------------------------------------------------------------------53.8
40-------------------------------------------------------------------------66.7
45-------------------------------------------------------------------------81.8
50-------------------------------------------------------------------------100
55-------------------------------------------------------------------------122
60-------------------------------------------------------------------------150
65-------------------------------------------------------------------------186
70-------------------------------------------------------------------------233
75-------------------------------------------------------------------------300
80-------------------------------------------------------------------------400
85-------------------------------------------------------------------------567
90-------------------------------------------------------------------------900
The only goal should be account survival and enhancement, the only rule for doing this is by any means, so we can either book a loss or manage trade drawdown in this partially random market we trade by constantly trying to adjust the risk of ruin that we create for ourselves by entering such a place.
A basic business model as related to the market, making the right mindset work and learning to detach yourself from the money aspect I have found is to view what we do like this
Stock..
This is the pairs that you are holding currently, as with any stock some of it will fly out the door (instant profit) and some you be left/stuck with for at least a while, best thing you can do for your business with this harder to sell/move stock is put it on offer at a discount, to make it more appealing to the potential customer and your bottom line (account) it is best to bundle it with some stuff that is wanted, so this is what I call offsetting, the idea is when you book a profit from a fast move line of stock look at the stock that is not selling and bundle some of it with the set you have just booked to the account to produce a break even or above order.
Running costs..
This is the swaps, your computer and other stuff you pay out to allow you trade, every business has costs associated with its ongoing trade.
Loans..
This is the drawdown, sometimes you must accept you will need take on bigger loans than other times, best business practice is pay down these loans whenever you get the chance especially if you have an unexpected wind fall profit, loans can be hard to deal with in any business at times, that is why we need to sometimes bundle our stock to create sets of offers to offset the loans.
Profit..
This comes when everything you have done and are doing is right and ready (the build it and they will come thing), this means knowing how to manage your money to minimise your losses that you are trading with in many different ways, the by any means thing which can mean anything you need to do to create that break even plus trade set to book to your account, this can include trading both ways at the same time in a pair, offsetting, reverse recoveries and the list goes on really any way you can think of to achieve the business survival and success, there should be no rules about this (so long as they are legal to do), I see everywhere I look people making rules to trade the market pairs but I do not see much about trading your account with the only goal being to make money!!!, the money is just a tool for you to create something with.
WW table of loss/recovery..
% Loss initial capital-----------------------------% profit required to Recover
5--------------------------------------------------------------------------5.3
10-------------------------------------------------------------------------11.1
15-------------------------------------------------------------------------17.6
20-------------------------------------------------------------------------25
25-------------------------------------------------------------------------33.3
30-------------------------------------------------------------------------42.9
35-------------------------------------------------------------------------53.8
40-------------------------------------------------------------------------66.7
45-------------------------------------------------------------------------81.8
50-------------------------------------------------------------------------100
55-------------------------------------------------------------------------122
60-------------------------------------------------------------------------150
65-------------------------------------------------------------------------186
70-------------------------------------------------------------------------233
75-------------------------------------------------------------------------300
80-------------------------------------------------------------------------400
85-------------------------------------------------------------------------567
90-------------------------------------------------------------------------900
The only goal should be account survival and enhancement, the only rule for doing this is by any means, so we can either book a loss or manage trade drawdown in this partially random market we trade by constantly trying to adjust the risk of ruin that we create for ourselves by entering such a place.
A basic business model as related to the market, making the right mindset work and learning to detach yourself from the money aspect I have found is to view what we do like this
Stock..
This is the pairs that you are holding currently, as with any stock some of it will fly out the door (instant profit) and some you be left/stuck with for at least a while, best thing you can do for your business with this harder to sell/move stock is put it on offer at a discount, to make it more appealing to the potential customer and your bottom line (account) it is best to bundle it with some stuff that is wanted, so this is what I call offsetting, the idea is when you book a profit from a fast move line of stock look at the stock that is not selling and bundle some of it with the set you have just booked to the account to produce a break even or above order.
Running costs..
This is the swaps, your computer and other stuff you pay out to allow you trade, every business has costs associated with its ongoing trade.
Loans..
This is the drawdown, sometimes you must accept you will need take on bigger loans than other times, best business practice is pay down these loans whenever you get the chance especially if you have an unexpected wind fall profit, loans can be hard to deal with in any business at times, that is why we need to sometimes bundle our stock to create sets of offers to offset the loans.
Profit..
This comes when everything you have done and are doing is right and ready (the build it and they will come thing), this means knowing how to manage your money to minimise your losses that you are trading with in many different ways, the by any means thing which can mean anything you need to do to create that break even plus trade set to book to your account, this can include trading both ways at the same time in a pair, offsetting, reverse recoveries and the list goes on really any way you can think of to achieve the business survival and success, there should be no rules about this (so long as they are legal to do), I see everywhere I look people making rules to trade the market pairs but I do not see much about trading your account with the only goal being to make money!!!, the money is just a tool for you to create something with.
-be careful about what you allow to be put in your mind-
2