The Business of trading - what we forget - Psychology and Money Management | futures io social trading
futures io futures trading

The Business of trading - what we forget
Updated: Views / Replies:485 / 4
Created: by steve2222 Attachments:0

Welcome to futures io.

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

The Business of trading - what we forget

  #1 (permalink)
Just a boy
Auckland, New Zealand
Futures Experience: Beginner
Platform: Sierra Chart
Broker/Data: AMP/CQG
Favorite Futures: Whatever moves in my timezone
Posts: 1,803 since Sep 2009
Thanks: 3,165 given, 1,362 received

The Business of trading - what we forget

Too often we as traders forget we are running a business (well those of us who aren't doing it as a hobby or sophisticated video game) and spend too much time focusing on single aspects of the business like entries & indicators, margin requirements and commission costs.

We might them spend sometime thinking of money & exit management, our PC hardware and the mental game.

Some of us may even regularly keep up to date with the support board and product announcements for our favoured software (personally I look at the latest support board postings for SierraChart at least 3 times a week - it is amazing how much I have learn't by doing this).

But how much time do we spend on risk and disaster management?

Here is a blog I received by email this week on a very specific aspect of risk/disaster management - your demise or incapacitation (whether mid trade or not).

I was pleased to receive/read this as I have been travelling away from NZ a lot for the last 2 years and I actually took this step before I left to ensure specifically trading business matters were covered. My lawyer in NZ has a sealed envelope in his safe to be opened only if I die or are unable to make decisions for myself. In the envelope are all details related to my trading accounts, their location and the passwords.

There you go, done my bit to be a kill joy on a Saturday in summer

A trader friend experienced chest pain and numbing feeling all over on her upper body earlier this week. She had such experience before and thought that by resting and taking a few pain killers the troubles would go away. It did not and she was hospitalized that night. Later on she went unconscious. The family is not taking this well. There is also the added worry of her trading account not being attended to as the family knows that she is a full time trader.

Read all:

Legally Preparing for the Unexpected |

With due credit to DayTradingBias

Prediction is very difficult, especially about the future - Niels Bohr, Danish Physicist
Reply With Quote
The following 8 users say Thank You to steve2222 for this post:
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

  #3 (permalink)
Every Day I'm a n00b
San Tan Valley, AZ/USA
Futures Experience: Advanced
Platform: NT7
Broker/Data: IB, Tallinex, & 10 others.
Favorite Futures: Futures
Posts: 195 since Jun 2013
Thanks: 693 given, 159 received

Failsafes and hard rules that require human intervention.

This way, if there's no human to say "yes, trade today", then the algos/HFTs don't trade.

Similarly, have broker-level loss limits in place, and multiple software level and hardware level failsafes and cutoffs.

Reply With Quote
The following 3 users say Thank You to FABRICATORX for this post:
  #4 (permalink)
Trading Apprentice
Vancouver, BC
Futures Experience: Beginner
Platform: Other
Favorite Futures: MJY, M6A, M6E, M6G, N225M, MCD
Posts: 25 since Sep 2014
Thanks: 0 given, 17 received

Not sure if this is related; but additional measures such as having mobile apps available in case power goes out at home. Also, being 5 minutes drive from relatives home (who uses a different internet service provider), in the event something goes down with my ISP

Reply With Quote
The following user says Thank You to thetamax8 for this post:
  #5 (permalink)
Market Wizard
London UK
Futures Experience: Beginner
Platform: CQG
Favorite Futures: Futures
xplorer's Avatar
Posts: 2,426 since Sep 2015
Thanks: 4,897 given, 3,446 received
Forum Reputation: Legendary

thetamax8 View Post
Not sure if this is related; but additional measures such as having mobile apps available in case power goes out at home. Also, being 5 minutes drive from relatives home (who uses a different internet service provider), in the event something goes down with my ISP

Yes it is absolutely related. Part and parcel of contingency planning.

I'd also add that the more experienced traders (i.e. the ones who have at least suffered 2-3 connection outages while in the middle of trades) surely will have put such contingencies in place: they don't want to run the risk of failure that would cost them in the thousands when the cost of planning for this type of issues is usually in the hundreds.

Reply With Quote
The following user says Thank You to xplorer for this post:


futures io > > > The Business of trading - what we forget

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

FIO Journal Challenge featuring NinjaTrader ($2,000+ of prizes)


Prototyping Python Strategies (part 2: Backtesting) w/Ran Aroussi [special time: 1PM ET]

Elite only

Portfolio Diversification w/Brendon Delate @ Diversify Portfolio

Elite only

An overview of volumetric analytical tools w/Sergey Sokolov @ PTMC

Elite only

John Hoagland (TBA)

Elite only

FuturesTrader71 Extended Ask Me Anything (AMA)

Elite only

Pete @ Jigsaw Trading (TBA)

Elite only

John @ No BS Day Trading (TBA)

Elite only

An Afternoon with FIO member Softsoap (being rescheduled)

Elite only

Similar Threads
Thread Thread Starter Forum Replies Last Post
Where is trading system forum forget all the other crap WoodGrail Traders Hideout 13 December 14th, 2015 10:01 AM
Every single business process in a trading firm/business>>> budfox The Elite Circle 6 July 11th, 2015 08:23 PM
How to grow a trading business? philippe07024 The Elite Circle 14 February 13th, 2013 03:02 PM
Trading as a business? GaryD Psychology and Money Management 15 September 27th, 2011 01:01 AM
Trading as a Business ZTR The Elite Circle 120 December 23rd, 2010 04:14 PM

All times are GMT -4. The time now is 09:38 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-05-24 in 0.09 seconds with 19 queries on phoenix via your IP