Super Fund Investing vs Short Term Trades
You may be having great success with your short term trading portfolio and have become comfortable with investment strategies. Now you may wonder if you should apply your successful methods to your superannuation fund. Can you treat your super fund and your trading fund the same? What about calculating stops?
A super fund and a trading fund are two different types of investments and should be treated differently. For one thing, your super fund has a much larger amount of money at stake. For another, the purpose of the funds is different. Therefore, they require different approaches.
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.
Your super fund should be allowed to grow over the years so when you are allowed to cash in on it, you will have a nice sum available to provide financial security.
The same thinking applies to your stops. You want to nip your losses and let profits run but you approach the two investment methods very differently. The way you apply stops to your trading fund just wouldn't work for your super fund.
David: Are you using the same method of calculation on your super fund as your CFD trading fund? Obviously the width is going to be different, but are you going to be using the same method of calculation?
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. - 23311
A super fund and a trading fund are two different types of investments and should be treated differently. For one thing, your super fund has a much larger amount of money at stake. For another, the purpose of the funds is different. Therefore, they require different approaches.
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.
Your super fund should be allowed to grow over the years so when you are allowed to cash in on it, you will have a nice sum available to provide financial security.
The same thinking applies to your stops. You want to nip your losses and let profits run but you approach the two investment methods very differently. The way you apply stops to your trading fund just wouldn't work for your super fund.
David: Are you using the same method of calculation on your super fund as your CFD trading fund? Obviously the width is going to be different, but are you going to be using the same method of calculation?
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. - 23311
posted by Mr. Forex at
6:14 AM
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