Is There a Way to Have Minimal Risk When Trading

Stock markets in general and stock indexes in particular have withered a gradual demise all thru 2012. I personally traded thru 2006, as did a good share of readers here too. We recall that as hands down the worst trading year for eminis without even a near second place before 2012.

The game has clearly shifted from shriveling stock indexes to the other rapidly-expanding futures markets. This week alone I received no fewer than five (5) emails from different traders who thanked me profusely for profiling soybeans ZS and corn ZC futures contracts here. Quite similar to the feedback received earlier this year when we detailed some info on currency futures & FX markets.

You might be surprised at how narrow a scope and how myopic real info for traders really is out there. The world of financials blogland is mostly a public diary effort where authors detail their personal experiences. Little is offered in the way of knowledge or education in the general sense… which is neither good nor bad, it merely is.

Public message boards for traders are an eclectic mix of few successful veteran traders sharing a whispered voice amidst a cacophony of unsuccessful traders’ collective noise. Trying to figure out what’s true or false, myth or real in those places is a challenge.

Modern-day traders, like everyone else everywhere, turn to free information on the internet as their starting point to learn anything. The fallacy remains intact that everything known to man exists in open source somewhere on the web. So most traders spend(waste) endless hours of precious time learning nothing of value and in fact plenty of inhibiting = damaging stuff to their budding careers.

With my time here in this tiny little corner of the web, I have always tried to educate and enlighten along with self-promote. Much of that has included sharing a bunch of stuff that is directly negative to any pure sales efforts. If my goal was to sign up as many cm team positions here as possible, I’d push the concept of “scalping” ES or FX symbols as the primary offer. Hands down those two markets and the allure of fast trades for tiny gains and “nil risk” fallacy are what most flailing traders seek.

The human logic of fast, tiny trades and lots of them for big overall gains appeals to their human desires of fast action, continual action, lots of adrenaline and fun with minimal risk. Sounds great in theory… does not work in reality. If it did, every veteran trader (starting with myself) with no exceptions would ever do anything but “scalp” trade.

Why wouldn’t we?

That question in itself should speak volumes and volumes to open-minded traders who still keep themselves stuck in that rut of perpetual failure chasing myths.

A number of email questions and comments arrived these past few days on the subject of programs for potential 3rd-party capital backing. First let me repeat the fact that I am neither affiliated with nor endorsing any company. I am bringing awareness to these offerings, and taking the first step of going thru the process myself. That’s all.

Each and every individual who is interested to whatever degree needs to complete their own research and due diligence for this process. By no means am I offering the idea that you needn’t do anything further because I’ve given the “all-clear” assurance. Once I complete the two-week process and see what progresses from there, we’ll report back in public fashion on those findings thru actual experience. Meanwhile, I will use the daily results as part of our educational process inside the team-only educational website. The inevitable outcome of what may happen beyond has no bearing on day-to-day trading results within.

As stated before, I’m dedicating the next two weeks of trading focus to this project in addition to trading CL contracts alone in my own personal efforts. Multiple symbols in this project, CL alone on a personal basis. Potential upside reward is an additional $150,000 working capital to start and higher amounts potential from there if successful.

Let’s not forget that literally thousands of individual traders formerly with MF Global and/or PFG now wished they had 3rd-party working capital rather than their own money stranded = lost to the process instead. Many of those former traders with six, seven and eight-figure accounts got blown up and blown out of this profession.

I’m frequently asked which brokers and/or clearing firms do I think are safest to park money with. My answer is the same in each case… I don’t know. Who really does? If someone else believes they have a solid situation with their capital and seek active traders to manage such, I’m interested if the upside potential is great enough.

Who wouldn’t be? Other than traders who deep down know they cannot get it done in reality.

Our end-day educational program will continue to grow and thrive as it has consistently done since inception, way back on April 1st, 2002. I am particularly proud of the individual success stories we’ve been part of since then, and judging from the continual stream of unsolicited feedback emails we remain on the right path, still.

The same path we’ll continue on thru the balance of 2012, into 2013 and beyond 🙂

For more daily updates from Austin, visit his blog at Coiled Markets.