Friday, November 09, 2012

The potential rewards of futures trading are significant, but in no way should it be seen as a get rich quick scheme. Traders looking for quick cash end up trading more on emotion and greed than detailed analysis and proper risk management. The desire for money forces investors to look desperately for the next trade. They are 1nore likely to take unecessaiy risks to get their retu'n, and those additional risks usually lead to large losses. It is even worse if they happen to have some positive results early. If traders have a string of successful trades, they develop a false sense of invincibility and ego and begin to increase the stakes in their already risky trades until they lose everything very fast.

A familiar story?

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"There is the plain fool who does the wrong thing at all times anywhere, but there is the Wall Street fool who thinks he must trade all the time."J Livermore Manchester City FCl Crude Palm Oil

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From Dragons and Bulls by Stanley Kroll
Introduction and Foreword
The Importance of an Investment Strategy
5 The Art of War, by Sun Tau (circa 506 BC) and The Art of Trading Success (circa AD 1994)
That's the way you want to bet
Long-term v Short term trading
Technicals v Fundamentals
Perception v Reality
Part 1: Winners and Losers
Part 2: Winners and Losers
Sun Tzu: The Art of War
Those who tell don't know, those who know don't tell
Why there is no such thing as a "bad market"
The Secret to Trading Success
The Experts, do they know better?
Risk control and money management
Larry Hite: The Billion Dollar fund Manager
Systems Trading:Kroll's Suggested Method
Buy the Strength Sell the Weakness
Good advice
The 'good bets' business by Larry Hite
Don't lose your shirt
Ed Sykota's secret trend trading system