Maverick Money Management - Good, Bad or Ugly?

[tech/a]

What in your view is a Maverick?

Are you a "Maverick?"
Have you every been a successful Maverick?
A reformed Maverick?
A recovering Maverick?

Any good or bad Maverick experiences?
Any advice?
Is it a good or bad way to do things.

I'm actually speaking of Mavericks in all areas of Wealth creation not necessarily trading alone.

 

[MS+Tradesim]

Re: Maverick Money Management-----Good,Bad or Ugly

Reformed maverick. Confused luck with skill and loaded up.

While I think what Ivan has done is fantastic and good on him, I did big things in shares and lost the lot when things changed. Took me years to accept responsibility. Since then, risk management is everything.

 

[nunthewiser]

need to be able to tick more than one option tech/a... them bottom 2 sum it up

 

[sammy84]

I think nearly every trader started out as a bit of a maverick, then the results of this led us to learn money management.

 

[Trembling Hand]

Guys I do this stuff all the time. in fact I've done it about 30 times in the last 2 years.

BUT

If you are learning to trade this will do more damage than good. A lot of trauma & bad habits comes from blow ups. If you are not reasonably competent in what you are doing you are more than likely going to just program yourself to the fight or flight response. not the ideal learning environment.

 

[MS+Tradesim]

If you are learning to trade this will do more damage than good. A lot of trauma & bad habits comes from blow ups. If you are not reasonably competent in what you are doing you are more than likely going to just program yourself to the fight or flight response. not the ideal learning environment.

Amen. Preach it bro.

 

[tech/a]

I ticked multiple options so you can choose more than 1

 

[peter2]

Thanks TH, what would you say to those who know what they're doing but have never risked a large % of a small amount?

There has got to be some benefit of going a little crazy once or twice.

 

[Cartman]

If you are learning to trade this will do more damage than good. A lot of trauma & bad habits comes from blow ups. If you are not reasonably competent in what you are doing you are more than likely going to just program yourself to the fight or flight response. not the ideal learning environment.

very responsible post from someone who has been both sides of the fence

never seen a great trader yet who hasnt blown a few accounts --- its called experience/paying your dues etc ----

without experience Maverick MM WILL blow you up ---

with experience, there is no such thing as Maverick MM --- UNLESS you didn't learn anything from the blowups --- it just becomes calculated risk; thats why they call it experience !!

 

[Mr J]

Are we defining a maverick as someone who doesn't adhere to responsible money management?

 

[tech/a]

Are we defining a maverick as someone who doesn't adhere to responsible money management?

As percieved by others. Yes

 

[motorway]

Are we defining a maverick as someone who doesn't adhere to responsible money management?

A maverick is an unbranded range animal, especially a motherless calf. It can also mean a person who thinks independently,
, a lone dissenter, a non-conformist or rebel. Sometimes it means to swear to one.

A true maverick would have to tick all four

motorway

 

[motorway]

I in the end ticked three boxes

motorway

 

[Timmy]

Nah ... this is Maverick.

 

[Timmy]

A true maverick would have to tick all four

motorway

LOL! GOLD!

 

[brty]

Should a $2,000 account be traded the same way as a $200,000 account??

Can you/me/we/us be mavericks with one and not the other??

At what point should a change from maverick to conservative occur??

Will changing kill results or save because of changing market conditions??

When will the questions stop and answers appear??? :

brty

 

[brty]

And I thought his a Maverick!!!

 

[alwaysLearning]

I think that the MM used to build an account fast can be used in moderation somehow. If you built up consistant trading profits each week for awhile, you can put a little aside and throw it in a bucket shop brokerage account and have some fun with it.

As for the actual MM used as a maverick over the long term, it would be a bad idea. I think the idea is to keep risk small in the begining so that you can survive long enough to build skill. Without skill you will blow up doing maverick money management before you know it, lol.

When you have the skill, and IF you are very confident of something happening or whatever, then you can increase your position size at times to make a quick bigger gain. But hey, the markets are uncertain, or rather you are uncertain of where the market will go, so its important to weigh up the risk witht he reward.

The bottom line is that it can be done BUT very few people can do it, and even those people can blow up fast when you are leveraging your entire account at 400:1 or whatever. So in other words if you want to blow $1000 and it is spare cash and you don't care about it at all period. Then sure, do what TH has done or the guy from forex factory and throw it in a bucket shop broker and gun it and see how far you can get.

If you care about that 1000$ then don't do it, lol.

Someone asked earlier if this is the way we should all be doing it, uhm no, I don't think so. Need to get the skills up first and then IF you have enough money, put some aside and have a go. But don't be surprised if it blows up on you fast, real fast. In fact you can try and have a go at doing this with a demo account. See how hard it actually is

So yes, we risk no more that 2% per trade so that we don't blow up quickly and can survive a losing streak. Also, I believe that the total freak traders such as Jesse Livermore were so skilled that they knew when to ramp up and not to ramp up. That's how they were able to be consistant and be huge at the same time in my opinion.

By the way, ivant is obviously very skilled...you can't just fluke turning $1300 into $400000 in one year. They guy had to take HUGE risks but at the same time, he obviously knew what he was doing and had the skill to pull it off. But will he be able to be that consistant in the years to come? I don't know, I hope so, for his sake.

But then, I'm sure he'll continue to learn and figure out what works and doesn't work. And so he'll probably be doing this stuff for a long time yet

 

[Mr J]

By the way, ivant is obviously very skilled...you can't just fluke turning $1300 into $400000 in one year. They guy had to take HUGE risks but at the same time, he obviously knew what he was doing and had the skill to pull it off. But will he be able to be that consistant in the years to come? I don't know, I hope so, for his sak

I'm going to have to address this. No, he didn't have the "skill to pull it off". He took large risks, and the variance was favourable. The end result was completely out of his control. He may be very skillful, but don't disregard that fact that he's had to be quite fortunate to be able to do that.

The bottom line is that it can be done BUT very few people can do it

Those who can apparently do it are on the edge, if not over it. In the end we are all vulnerable to variance, and trading aggressively just increases the vulnerability. We can't control variance, so skill isn't a factor. All we do is stack the deck and hope the cards play our way.

 

[Trembling Hand]

Would of liked this pole to be open to see who voted for what.