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I started trading from only $5000 using options, as futures was obviously
too rich for me.
I trade options on commodity futures.
Regards
Trevor De Vries
> -----Original Message-----
> From: ramon [SMTP:rbarros@xxxxxxxxxxxxxxxxxx]
> Sent: Wednesday, June 03, 1998 2:06 PM
> To: RealTraders Discussion Group
> Subject: Re: Dream the Dream..!
>
> Hi Jonathan
>
> ----------
> : From: Jonathan Stewart Dempster <aceit@xxxxxxxxxxxxxxx>
> : To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> : Subject: Dream the Dream..!
> : Date: Wednesday, June 03, 1998 9:17 PM
> :
> : hi, i am in the u.k. and also share the dream
> : friend. I will be starting with limited capital (some say its way to
> : small,) about 7,000 to 10,000 u.s. dollars and will commit 1,000 u.s.
> : per month as well.
> :
> : I figure i should be able to support at least one trade per month..
> Now
> i
> : have heard people say you need a minimum of say 25,000 really, but i
> dont
> : think that is so.... i wont be trading for the sake of trading, but
> waiting
> : on the sidelines for the oppurtunity which presents the least
> risk...(yes
> : and i do know about the coin flipping theory, but the markets are not
> : random,not all the time)
>
> My view is US$7000.00 to US$10,000.00 for one contract of the slower
> moving
> commodities or a Mid-AM may be just enough.
>
> No trader irrespective of capital can afford to trade for the sake of
> trading; to have
> any chance of success, we all need to look for trades that place the odds
> in our
> favour. The rub is:
>
> that assessment is one based on probabilities given that we
> cannot foretell the future. No matter how careful we try to be there will
> be times
> when we encounter the dreaded drawdown and here's where adequate
> capitalization plays its role.
>
> : So my plan is to study charts look for extreme price levels, high and
> : lows, work out trading plan, ie entry and exit points, place the order
> and
> : thats it.
>
> Sounds reasonable enough.
> :
> : My stops... they will be placed at a significant technical point. ie
> just
> : below relative lows/historic lows and highs, or if this implies too
> much
> : dollar risk then i will set a dollar risk value, (although i realise
> this
> : might not always be the best way to go.)
>
> Placing $ stops is tantamount to giving money to the mkt unless we're
> in a strongly trending mkt with little backing and filling. You'd be
> better off increasing your knowledge so that you can place technical
> stops other than at historic extremes.
>
> e.g.
>
> Placing your stop 10%v below the start of a directional move. See
> attached chart.
>
> : As for psychology..... well i agree that the biggest problem people
> will
> : face when trading is themselves.
> : Hence my decision to establish a trading PLAN, prior to entering the
> trade,
> : i feel acting on intra day impulses just is'nt for me, for some i am
> sure
> : it does work, but i need to ensure my survival and i know my emotions
> : greed, fear and panic might upset things if i day trade.
>
> I agree that for most having a trading plan is a pre-requisite to trading
> success.
>
> As for disclosing my trading plan - that plan is an irrelevancy to anyone
> except me. I say that because it's a plan that suits my trading style.
> Each
> of
> us has to find one that suits our personality. I'm sending what I consider
> the essential elements of a plan directly to you.
>
> all the best
>
> ray
>
> R Barros
> 101/25 Market Street
> Sydney NSW 2000
> Australia
>
> Voice: 61 2 92673470
> Fax: 61 2 92673478
> E-Mail: rbarros@xxxxxxxxxxxxxxxxxx
>
>
>
> : << File: Aud (GIF Image) >>
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