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?
Stuart: I appreciate where that person is coming from, but to me they are so different, two completely different aspects of investment trading. Probably the biggest difference between the two is the amount of money in both. I have a lot more money in my super fund than my day to day trading fund. The purpose of both those funds is so different.
If you were to suffer extreme losses in your investment trading fund, you wouldn't be happy, but it shouldn't ruin you financially. However, when it comes to your super fund, the last thing you ever want to do is lose it because it holds your financial future. You should take a conservative and defense approach to managing it. The amount of money in your investment accounts plays a big role in how you handle the accounts. While the basic rules of investing apply such as cutting losses and running profits, you must adapt your approach to protect your account and reap the maximum benefits.
I want my super fund to grow and grow so when, by law, I'm able to tap into it, it's all there and will set me up.
The same thinking applies to your stops. You want to nip your losses and let profits run but you approach the two investment methods very differently. The way you apply stops to your trading fund just wouldn't work for your super fund.
David: Are you using the same method of calculation on your super fund as your CFD trading fund? Obviously the width is going to be different, but are you going to be using the same method of calculation?
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. - 23200
Stuart: I appreciate where that person is coming from, but to me they are so different, two completely different aspects of investment trading. Probably the biggest difference between the two is the amount of money in both. I have a lot more money in my super fund than my day to day trading fund. The purpose of both those funds is so different.
If you were to suffer extreme losses in your investment trading fund, you wouldn't be happy, but it shouldn't ruin you financially. However, when it comes to your super fund, the last thing you ever want to do is lose it because it holds your financial future. You should take a conservative and defense approach to managing it. The amount of money in your investment accounts plays a big role in how you handle the accounts. While the basic rules of investing apply such as cutting losses and running profits, you must adapt your approach to protect your account and reap the maximum benefits.
I want my super fund to grow and grow so when, by law, I'm able to tap into it, it's all there and will set me up.
The same thinking applies to your stops. You want to nip your losses and let profits run but you approach the two investment methods very differently. The way you apply stops to your trading fund just wouldn't work for your super fund.
David: Are you using the same method of calculation on your super fund as your CFD trading fund? Obviously the width is going to be different, but are you going to be using the same method of calculation?
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. - 23200
posted by X - Men @ 5:28 AM
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