Lucky Speculator

Fail To Plan And You Plan To Fail.

dtc 20 August, 2007 23:50 Educational Materials, Trading Notes Permalink Trackbacks (0)

There is an old saying in business: "Fail to plan and you plan to fail."! 

So I took a one-day options trading class few weeks back and one of the thing we did in the class was the option trading simulation.  Before the simulation, the class did an example trade and knowing me; I went all out and max my allowed trading limit and at the end of it, when I expected to win the most, I lost!  

During the break, I looked the score board over and over again while others were out take the break.  I studied the lost and realize that based on the pre-set rules of the simulation, I had to come up a plan to take the advantage of the pre-set rules.  So I developed a trading plan, it was simple and was effective.  Follow the trading plan I put together that fully took advantage of the loop-hole found in the pre-set rules, my team was soon in the leading position after the first few rounds of trading.  Started with $100,000 of initial capital, by the end of first few rounds, my team had a stunning realized profit of $1.2 million!  At the same time, the competition was still struggling to figure their position at the time.

                                                                                          

Thru out the day, I had one bad trade that blew away half million dollars and by the end of day, even with that one bad trade, my team ended up on top with ~$780,000 and the other team had realized gain of only ~$200,000…

 

So, what am I trying to say with this story here?  Well… not really anything… I just want to write the experience out in my blog and use it to remind myself about the importance of a good trading plan.

Well, Lucky Speculator needs a good trading plan and in my next few posts, let’s review what is a trading plan and see if we can put together a trading plan for the Lucky Speculator!  So stay tune! 

          



comments


Add comment

Add comment
 authimage
All communications on LuckySpeculator.com are for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy securities, currencies including spot, futures and/or options or any other financial instrument.

LuckySpeculator.com Disclaimer
Any issue or recommendation contained herein may not be suitable for all investors. Moreover, any issue offered herein is not guaranteed or endorsed by LuckySpeculator.com, not FDIC insured and may lose value.
Risk Disclosure
Unique experiences and past performances do not guarantee future results! Testimonials herein are unsolicited and are non-representative of all clients; certain accounts may have worse performance than that indicated. Trading stocks, futures, options and spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. No "safe" trading system has ever been devised, and no one can guarantee profits or freedom from loss.
U.S. Government Required Disclaimer
Commodity Futures Trading Commission. Forex, Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

Substantial risk is involved. Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Options markets. Don't trade with money you can't afford to lose. Nothing in our course or website shall be deemed a solicitation or an offer to Buy/sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of futures results. Trading involves high risks and you can lose a lot of money.

More www.LuckySpeculator.com Disclaimers

© Copyright 2007 www.LuckySpeculator.com. All rights reserved.