Friday, April 05, 2013

As Stanley Kroll puts it, "One of the reasons underlying this excessive preoccupation with the fear of losing is that the speculator often overtrades, both in terms of the size of the position as well as the turnover activity of the account. lt is essential that the trader control and overcome these urge to overtrade or over position. My general rule is to utilize a maxirnurn of one-third (for futures and currencies) or one-half (for securities) of the The moral of the story, don't overtrade and trade for the sake,and when some broker asks you to trade 1,000 contracts per month to get discount, run... Eurex is the biggest derivatives exchange in the world and their model is to have clearing charges that are uniform across all market participants, not the discriminatory practices some exchanges practice. So Eures is the benchmark to be modelled on.

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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