Super Fund Investing vs Short Term Trades
If you are having good results with your trading portfolio should you consider using the same techniques with your superannuation fund? What about calculating your stops? Do you do that differently with your super fund than you do with your trading fund?
Actually those two types of funds are totally different from each other. They represent different aspects of investment trading. One difference is usually the amount of money in the funds. Your super fund probably is much larger than your trading fund. The purpose of the funds is also different.
My investment trading fund, as much as I don't want to, I could afford to lose it tomorrow. It wouldn't ruin me. The last thing I want to do is lose all the money in my super fund. I am so conservative and so defensive and thinking much longer term in my super fund than I am in my day to day trading fund. So completely different purposes and to me they require completely different approaches. The size of a trading fund does affect your whole approach to trading. Whilst all the same rules of effective trading apply, most notable nipping losses in the bud and letting your profits run; you have adapt the way in which you apply those rules for maximum benefits and profits.
You want your superfund to continue to grow so that when you are able to finally tap into it, all of the money will be there and you will be financially secure.
The question was asked about setting stops differently. We all have the same rules of cutting losses and letting profits run, but the way we apply those rules across the different trading styles is very different. So of course I use very different stops in my super fund, and one wouldn't work for the other.
Another thing to consider is the method of calculation; would you use the same method on your super fund as you would on your CFD trading fund? You know the width would be different, but what about the method, is it the same?
Once again, your superfund is handled differently. You probably want to use a technical stop for your short term trades and a volatility base for your super fund. Long term trading and short term trading need to be handled differently in order for the long term fund to be profitable over time and to meet your individual circumstances. - 23221
Actually those two types of funds are totally different from each other. They represent different aspects of investment trading. One difference is usually the amount of money in the funds. Your super fund probably is much larger than your trading fund. The purpose of the funds is also different.
My investment trading fund, as much as I don't want to, I could afford to lose it tomorrow. It wouldn't ruin me. The last thing I want to do is lose all the money in my super fund. I am so conservative and so defensive and thinking much longer term in my super fund than I am in my day to day trading fund. So completely different purposes and to me they require completely different approaches. The size of a trading fund does affect your whole approach to trading. Whilst all the same rules of effective trading apply, most notable nipping losses in the bud and letting your profits run; you have adapt the way in which you apply those rules for maximum benefits and profits.
You want your superfund to continue to grow so that when you are able to finally tap into it, all of the money will be there and you will be financially secure.
The question was asked about setting stops differently. We all have the same rules of cutting losses and letting profits run, but the way we apply those rules across the different trading styles is very different. So of course I use very different stops in my super fund, and one wouldn't work for the other.
Another thing to consider is the method of calculation; would you use the same method on your super fund as you would on your CFD trading fund? You know the width would be different, but what about the method, is it the same?
Once again, your superfund is handled differently. You probably want to use a technical stop for your short term trades and a volatility base for your super fund. Long term trading and short term trading need to be handled differently in order for the long term fund to be profitable over time and to meet your individual circumstances. - 23221
posted by X - Men @ 5:00 AM
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