GS, what's up with your signature

OH I SEE.

Is legal?

Running Money

Kathy and I often receive offers to manage money and so far we've refused everyone of them because we are simply too busy with research and our advisory services to devote the proper energy to the task. However the idea of running money has made me think about the criteria I would use to evaluate a money manager. Following are simply my thoughts and are by no means the final word on the subject, but I thought they may be useful points of reference for everyone to consider.

1. Be Sceptical

I never believe triple digit returns. Even if the trader can show me an audited trail of his results (and most never can), I know that 100%+ gains can only be achieved in two ways - through massive leverage or unbelievable luck. In either case, disaster is just around the corner. Leverage will turn on you like a rabid dog and luck will always run out. Have I seen traders take $100 to $10,000? $10,000 to $1,000,000? Yes and yes. But inevitably I've seen those same accounts give the money back as $10,000 suddenly shriveled to $2,000 and $1,000,000 dropped to $100,000.

The problem with investing with a hot hand is that you never jump on board during the initial $10,000 to $1,000,000 run because the trader has no "record". Once the trader has a "record" and you climb fro the ride the losses inevitably start. In fact the longer I am in finance the more I believe that allocating your capital based upon the best return "record" is a near guarantee of losing money.

2. Acceptable Drawdown

Paul Tudor Jones, one the greatest traders of all time, has a very simple and I believe very effective formula for properly analyzing trading success. No sharp ratio, no risk-adjusted returns, no complicated math at all. Instead the Tudor Jones rule is quite straight forward. Your drawdown should not be greater than 1/3rd of your gains. That means that for every $1 run up in profits you should not give back more than 33 cents to the market. That is a very difficult task to achieve. Even, if the trader only gives back 50 cents of every dollar won consider him a good prospect for your money.

3. Evaluate By Months, Not Trades

Consistency is the last refuge of the unimaginative according to Oscar Wilde, but when it comes to financial returns it is the true measure of success, because money compounds and grows much faster in the long run with small but predictable returns rather than with huge hits or misses. At the same time worrying about every trade is a sure path to an early grave. Most professionals evaluate trading records on a monthly basis which seems to be a period long enough to smooth out the day to day bumps but short enough to warn the investor of any possible problems. Steve Cohen and Paul Tudor Jones have only had two or three losing months out of more than 200 and in the losing months they never gave back more than 2% of the equity. That's the gold standard to beat.

4. The 1% Solution

What's a reasonable rate of return? 1% per month. Achieve that and you are making 12% a year - almost double the long term average of the equity markets. Make 2% per month and you are on the way to hedge fund immortality as less than 1% of all investors worldwide produce such returns on a consistent basis. These expectations may seem remarkably modest but they are realistic. You make millions one slow dollar at a time."

Reference : Boris Schlossberg & Kathy Lien

Hi,

I have been recommended by a friend who is trading forex using some automated system. He claims that it will be able to give him conservatively 2 - 3 % per month with minimal effort. I am wondering if this is true. With the automated forex system, we don't need to do anything? How does it work?

Hope someone can help clarify some of my doubts on this.

JavaRoach
PrivateNetWorth

Sorry dude, we already have our own group chat going on.

lol gslearning.. no need to post your profit here la. There are plenty of traders in here that makes more then that yet they dont screenshot it here.

It's not a wise idea to post ur email here, as you'll receive tons of spam mail later on.

NFA plans to destroy MT4 in the USA?

Source: http://www.forexpeacearmy.com/forex-forum/...oy-mt4-usa.html

im new here.. gonna start trading live soon.. well 1 question.. how do u fund the account when opening live? credit card accept or not? lol.. been trading/practicing my demo account for months.. time to start my live.. hehe

Great!! Mind to share your trading strategy here?

Gee. I somehow get the impression that you posting up your achievements has the ultimate motive of enticing people to join your workshop. Well good luck

Alright, we need a new law here. Can we have a more meaningful discussion then just showing off? Newbies dont learn anything by READING how much u made. Be more constructive and contribute to RELATED studies that will help lyn members to execute a trade.

If this showboating persists, i will have to report to the mods. This is a DISCUSSION room, not a place to hang out and show off your winnings.

I know his purposes, he just want to advertise his learning center, that's why keep posing earning pips to attract ppl but he never post his losses pips here.