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Hi Ira,
I tried to contact you privately, but I'm not sure
you got my email. When you posted it ten years ago, I only knew that one should
have a trade management plan. I wasn't aware that a business plan was
another necessary part of the "game", distinct from the trade management
aspect, and I just didn't get what Moore was talking about. Hey, who needs it
when I'm just going to get rich trading, right?!! And since I didn't exactly
stick to any trading plan, what were the odds I'd stick to a business
plan?
Lesson: if it's something I don't understand,
then it's probably exactly what I'd better spend more time learning about.
Duh.
Since then (and after blowing out three accounts),
another trader told me that I should first create a business plan, because
everything else in my trading depends on it. He also said it should take a
couple weeks to create. Since I still didn't have a clue what a business plan
should contain, I dug out all the old RT posts I'd saved and sorted into
various categories, and found a file labeled "Management", containing Moore's
article you posted. It finally dawned on me that trading is somewhat more
involved than "cut losses short, let profits run" and other such generalities...
So several books and old RT posts later, I finally got it, and understood that a
big part of the failure rate in trading is the lack of a coherent structure
(business plan). It also took more than a couple of weeks to give it the
consideration it required...
The point is that after collecting everything I
could find on the subject, I want to put it together into a concise explanation
for those poor fools like myself who think they're going to trade their way to
unimaginable riches with their 2K accounts, and Moore's article is some of the
best source material I've seen. So I wanted to see if there was more of it, and
thank you for posting it all those years ago.
DC
----- Original Message -----
Sent: Sunday, March 15, 2009 1:29
AM
Subject: Re: [RT] Risk Management by John
Moore
I didn't keep the article, but is just a common
business plan that anyone that went to business school would employ before
starting a new business or to analyze his current business.
<SNIP>
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