Lesson Learn from Newbie Support Group Gathering

Hi All,

I learn something very valuable from the gathering and I commit myself to doing it. And that's Risk Management.

Courtney mentioned that he followed a very simple method - BUY on the next day open if it is a bull market and SELL it off if it drops $0.10. He never short the market so he didn't earn any money in a bear market. He was a profitable trader using this method! He explained that because of Risk Management and that is why he is a profitable trader.

It have jolt me to remember what Courtney said in Never Work Again and the Iron Clad Rule when comes to investment for Warren Buffett - "Rule No. 1: Never Lose your Money! Rule No. 2: Always refer to Rule No. 1!" With the incident of EUR/USD - both MUT and CoFlex contract was negative 200 pips each, I realised that I threw the 2 Rules out of the Window. As what Courtney have said, we are suppose to grind it out bit by bit until the BIG one comes :)

So I commit myself to use 1% of my total equity for all position, unless the 1 position takes more than 1%. Meaning 1% risk per instrument per technique. :)

Your Friend,
Max Tay