In a post titled 'Money Management: The Key to Survival' Karl shows what happens if you chose to ignore the Golden Rule. Trading might not be easy, but the few principals you will learn about survival are. Unfortunately these rules contradict the 'get rich quick' mentality so many long (or short) for. I clicked through to see the original person's blog (emphasis mine)...
This will perhaps mark the top for the entire rally. I am now saved from a possible liquidation, and I hoping to recover. My game will no longer be their game, I will do whatever I was doing before: Short Term Trading.
Yesterday when I was speaking with Atilla, he said "lightening doesn't strike more than once at the same spot on the same day." In my case, from now on, it will no longer deal with large cyclones. I am a rider of small storms. With the help I received, I am back to short term trading.
I shorted 500 ES contracts at 1003.75 today. Possible target is around 935. This is more like a short term trade and the only opportunity I have to recover, as I expect this move to happen in days.
Irregardless of the outcome this guy appears to be on tilt. If I could short 500 contracts right here I wouldn't even do it expecting a 70 point drop in just a few days. Not even with someone else's money. This viewpoint is irrespective of where the market goes but rather the motivation behind his trade, not to mention he is assuming he is right when he put the trade on. It reminded me of a good article I had read back when it was published called "Trader Tilt" which illustrates a similar situation to this guy. Good [re]read for everyone.
[addendum(after -10/es)] But then again, I'm guessing he'll strike it rich and set a good example for everyone to follow. Watch 981 on the SLP500, probably right around the time NFP comes out later this week. Guaranteed those numbers will be "juiced". His target on the S&P is logical, I'm just disagreeing with his approach. I wish the best for this person.
