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Why Is Money Management SO Difficult?


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Why Is Money Management SO Difficult?

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  #1 (permalink)
Shelton, Washington
 
 
Posts: 21 since Oct 2014
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I was wondering, because I would think this would be factored into any system, yes? I''m brand spankin' new to trading, but I would think when to exit could at least be dealt with heuristically.

I've aspergers, and am just trying to understand this issue. Forgive my naivete, but I'm trying to build a day trading system for myself, and am trying to avoid pitfalls. Also, where can I get a demo account? I hear Investopedia offers one, but I'm checking all my options, first.

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  #3 (permalink)
the coin hunter
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Noitartst View Post
I was wondering, because I would think this would be factored into any system, yes? I''m brand spankin' new to trading, but I would think when to exit could at least be dealt with heuristically.

I've aspergers, and am just trying to understand this issue. Forgive my naivete, but I'm trying to build a day trading system for myself, and am trying to avoid pitfalls. Also, where can I get a demo account? I hear Investopedia offers one, but I'm checking all my options, first.

put $1 in a jar each day, after 100 days pay for Elite membership you will find answer for all your questions and more.

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  #4 (permalink)
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Noitartst View Post
I was wondering, because I would think this would be factored into any system, yes? I''m brand spankin' new to trading, but I would think when to exit could at least be dealt with heuristically.

I've aspergers, and am just trying to understand this issue. Forgive my naivete, but I'm trying to build a day trading system for myself, and am trying to avoid pitfalls. Also, where can I get a demo account? I hear Investopedia offers one, but I'm checking all my options, first.

I suggest to go to any brokerage offering a Ninjatrader demo account and then use Ninjatrader Market Replay - Download to download data. Use the market replay feature in ninja trader and go through a few months of data on your favorite instrument. It's best to figure out a good trading system over a large sample size of trades so you don't get stuck on each and every single trades results.

R.I.P. Joseph Bach (Itchymoku), 1987-2018.
Please visit this thread for more information.
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  #5 (permalink)
Vancouver, Canada
 
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It's difficult because it forces the trader to experience short term discomfort and delayed gratification. Simple solution is come up with a strict rule based management plan and practice, practice a lot. Easier said than done but repetitive practice of your rules and refining them is the only way to get better short of automating your whole system. Do some searching on google for trading risk management, you should have plenty of material to sort through.

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  #6 (permalink)
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I agree getting into trading automation is the best solution for traders who are affected by emotions, I have tried building programs to trade for me , however the challenge is to bridge the gap between theoretical profit and actual profit

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  #7 (permalink)
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What is your definition of money management? I find most traders have the wrong assumptions about what money management is and isn't.

Having read Ryan Jones "The Trading Game" I see proper money management as position sizing and never dictates where and when to enter or exit the market. That is trade or risk management and shouldn't be confused with money management.

Trade and risk management is based on the strategy or method you are trading. The biggest problem traders have is trusting their method enough to trade it correctly.

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  #8 (permalink)
Shelton, Washington
 
 
Posts: 21 since Oct 2014
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Well, I am systems-based, and for futures day trading, that will hopefully help. You say that I should find a brokerage offering demo accounts; I'll ask Scottrade, see if they use Ninjatrader software.

Forex offers one, as does InterTrader 'cordin' to Google.
Do they do Ninjatrader?

Hm--Investopedia offers a demo account, too--does it take NinjaTrader?

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  #9 (permalink)
Shelton, Washington
 
 
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Hm...get the sense I'm talking inordinately stupid, again.

Emailed Forex, InterTrader, and Investopedia if they allow NinjaTrader on their sites. Trust they all allow futures day trading...choosing one out of them, or another, sounds generic, from what I glean....

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  #10 (permalink)
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Noitartst View Post
Hm...get the sense I'm talking inordinately stupid, again.

Emailed Forex, InterTrader, and Investopedia if they allow NinjaTrader on their sites. Trust they all allow futures day trading...choosing one out of them, or another, sounds generic, from what I glean....

If you are really having this much trouble finding a demo account (Something free that I'm sure almost every retail fcm offers), you should rethink trading.

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  #11 (permalink)
Shelton, Washington
 
 
Posts: 21 since Oct 2014
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Well, at various times, I've been ridiculed for sounding like at wild man, and criticized at others for sounding overly cautious. I'm actually trying to get it right. Emailed Forex, it replied:

Unfortunately we don't offer NinjaTrader practice accounts. At this time, we only offer NinjaTrader live accounts.
Okay, I'll log into that NinjaTrader account, Addchild, and see what there is.

Ah...so I'm supposed to download NinjaTrader to my computer. Don't have my laptop with me, I be on a public access terminal. Looks like I'll need to do this, tomorrow.

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  #12 (permalink)
Shelton, Washington
 
 
Posts: 21 since Oct 2014
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hs1130 View Post
I agree getting into trading automation is the best solution for traders who are affected by emotions, I have tried building programs to trade for me , however the challenge is to bridge the gap between theoretical profit and actual profit

I wouldn't argue with that, but why is it difficault, if emotion is detached from the equation?

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