If you’re comfortable with and making better results in your trading portfolio why don’t you use the same method in your superannuation fund? Also do you calculate your stops differently in your super than your trading fund?
Actually those two types of funds are totally different from each other. They represent different aspects of investment trading. One difference is usually the amount of money in the funds. Your super fund probably is much larger than your trading fund. The purpose of the funds is also different.
If you were to suffer extreme losses in your investment trading fund, you wouldn’t be happy, but it shouldn’t ruin you financially. However, when it comes to your super fund, the last thing you ever want to do is lose it because it holds your financial future. You should take a conservative and defense approach to managing it. The amount of money in your investment accounts plays a big role in how you handle the accounts. While the basic rules of investing apply such as cutting losses and running profits, you must adapt your approach to protect your account and reap the maximum benefits.
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 question was asked about setting stops differently. We all have the same rules of cutting losses and letting profits run, but the way we apply those rules across the different trading styles is very different. So of course I use very different stops in my super fund, and one wouldn’t work for the other.
Another thing to consider is the method of calculation; would you use the same method on your super fund as you would on your CFD trading fund? You know the width would be different, but what about the method, is it the same?
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.
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