The Art of Investment Trading
You may be having great success with your short term trading portfolio and have become comfortable with investment strategies. Now you may wonder if you should apply your successful methods to your superannuation fund. Can you treat your super fund and your trading fund the same? What about calculating stops?
A super fund and a trading fund are two different types of investments and should be treated differently. For one thing, your super fund has a much larger amount of money at stake. For another, the purpose of the funds is different. Therefore, they require different approaches.
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.
Your super fund should be allowed to grow over the years so when you are allowed to cash in on it, you will have a nice sum available to provide financial security.
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?
Again, the two accounts are handled differently. Short term trading does well using a technical stop but you should use a volatility base for your super fund. They need different methods for both to be profitable. It is important you do not lock into a single method of investing. You need to be adaptable in order to maximize profits and meet your individual goals. - 23310
A super fund and a trading fund are two different types of investments and should be treated differently. For one thing, your super fund has a much larger amount of money at stake. For another, the purpose of the funds is different. Therefore, they require different approaches.
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.
Your super fund should be allowed to grow over the years so when you are allowed to cash in on it, you will have a nice sum available to provide financial security.
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?
Again, the two accounts are handled differently. Short term trading does well using a technical stop but you should use a volatility base for your super fund. They need different methods for both to be profitable. It is important you do not lock into a single method of investing. You need to be adaptable in order to maximize profits and meet your individual goals. - 23310
posted by Mr. Forex at
6:11 AM
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