Maverick Money Management - Good, Bad or Ugly?

[Bobby]

honesty with oneself is an admirable attribute !!

Yes , its also the only thing that will save you when real trouble hits .
Well said Cartman.

As for Maverick trading , I just love it !!
Makes me feel alive , all those books on trading I have in my library are now redundant , stale thoughts that I followed once .

 

[Cartman]

Yes , its also the only thing that will save you when real trouble hits .
Well said Cartman.

As for Maverick trading , I just love it !!
Makes me feel alive , all those books on trading I have in my library are now redundant , stale thoughts that I followed once .

people are gona start thinking your a bit crazy Bob ---- haha

the funny thing is (and im guessing we are thinking the same language), the "Maverick" style of trading can actually be less risky than regular trading if it all goes to plan, cause you are playing with the house's money ----

the real fun/stress starts when you get to that level where the brain has to decide "deal or no deal" --- i'm still pretty conservative in a Maverick sense, but that comes down to (lack of) experience ---- i give myself about 2 years to get it right --- after that --- well thats another story :dunno:

 

[So_Cynical]

I have been a very successful maverick at times....everything from 200/1 winners at the races
(backed deliberately for the win) to getting down to my last $5 at Jupiter's casino one nite and
leaving 2 hours later with 300 bucks, all won on even money bets (roulette & two up).

In my trading and investing im a more organized maverick than i used to be, i am now willing and
in fact eager to take a loss and get out of something that's gone against me, and thanks to this
forum im much more disciplined, however when picking stocks im still somewhat a maverick/punter.

I like the big results u get from having big positions...funny cos that's what lead me to big punting
back in the day, currently im trading/investing all my (Disposable) funds in 2 positions, planing to
just keep turning that over and over and building...until i have enough for 3 positions etc.

 

[ivant]

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.

That is yet another difficulty in trading, accepting responsibility. Picking bull markets and knowing when they end is the trick It is far from easy too! Although the tape starts telling you little whispers when things die off.

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And I thought his a Maverick!!!

I have a love for that movie. I think I saw it when I was 12 or so for the first time, and I fell in love with it then

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.

If I may add to this, also confident in yourself. If you are in the zone, pile it up.

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

Most definitely. Learning is a big part. You can't stop learning. Things go in cycles and something from the past can give you a good hint, something in the present can also help. There is a lot of stuff out there to grasp. These small hints make up the big picture. Think about credit cards for example. Who doesn't think that will be the next big downfall. If people can't repay homes, how can they repay credit cards with 20% interest. But we will see if this plays a part when unemployment jumps. It takes 6 months for a bank to right off credit. So this could happen a few years into the future. Although, on the bright side, Citigroup can't fail twice lol. Thank you for believing I have skill, I'd love to think so. Only time will tell though

I think of it this way...it's a 2x2 matrix...

1. Skilled with balls of steel = successful traders who take more risky approach
2. Skilled with balls of normal human tissues = successful traders who follow normal risk management
3. Unskilled with balls of steel = (3a) May get lucky or, more probably, (3b) easily wiped out
4. Unskilled with balls of normal human tissue = Inconsistent results

A perfect example - for every ivant who post on this forum, there are 20,000 new traders who blew their $1000 account. Is ivant a (3a) or a (1)? I don't know. But (3a)'s don't stay there forever - they either become a 3b, or they turn into a 1, or their balls of steel turn back into human tissue.

To me I think the right path is to move from 4 to 2 and then try 1 if you so desire. The wrong path is start at 3 and hoping to land in 3a...

Hahaha well said Nice idea. I could also be a 4 you know These things aren't easy to predict my friend

 

[Mr J]

I havent voted.

But all 4 for me.

Technically, you were a winning/losing Maverick. Those who never were may miss out on some important lessons. As much as it sucks, the tough times are character-building.

 

[tech/a]

Technically, you were a winning/losing Maverick. Those who never were may miss out on some important lessons. As much as it sucks, the tough times are character-building.

Learnt more from Failure through life than from Success.
In Hindsite
Wouldnt trade those times of hardship---for success either.
for not to have suffered and battled through hardship would leave me I'll prepared for the multitude of times it raises its ugly head.

Now I greet it with enthusiasm.(The doom and gloom and the seemingly impossible).

If you want to be a real Maverick you need to be able to recognise when the crowd is down well before they do.
You need to see the punch well before it hits you.
You need to place yourself in the plane for take off before it does.

In other words put yourself in front of LUCK and remove yourself from BAD LUCK.

 

[Mr J]

You're preaching to the choir here .

As humans, failure forces us to contront reality, and those of us who will learn will find it invaluable. We're usually complacent in success, as when things are going well, there doesn't seem to be a reason to analyse our actions and to better ourselves. Those who have failed but are now successful will probably not only have better refined their methods, but also have a discipline and stability that is otherwise hard to gain.

If you want to be a real Maverick

A maverick of trading, it depends who I'd be comparing myself to. To successful traders, then no. To the market as a whole? Yes. Same goes for money management. If it's to the market as a whole, yes, but if compared to the responsible and profitable crowd, then no.

 

[Bobby]

people are gona start thinking your a bit crazy Bob ---- haha

the funny thing is (and im guessing we are thinking the same language), the "Maverick" style of trading can actually be less risky than regular trading if it all goes to plan, cause you are playing with the house's money ----

the real fun/stress starts when you get to that level where the brain has to decide "deal or no deal" --- i'm still pretty conservative in a Maverick sense, but that comes down to (lack of) experience ---- i give myself about 2 years to get it right --- after that --- well thats another story :dunno:

Hello Cartman , yep I do play one A/C a bit crazy , why ? because its exciting to cut & thrust & not worry about the outcome , your right about when its the house's money especially ~ Thats when the real fun happens :nuts:

I'm very conservative otherwise

 

[Mr J]

cause you are playing with the house's money ----

There are two ways to look at it. The first is that it's not your money until you take it off the table, and the second is that if you can lose it, then it is yours to lose. The first only exists because people ignore the second .