If you are satisfied and achieving better results in your trading portfolio, why not use the same method in your retirement fund? Also, do you calculate your stops differently in your super fund than in your trading fund?
Stuart: I understand where this person is coming from, but to me they are very different, two completely different aspects of the investment trade. Probably the biggest difference between the two is the amount of money they both have. I have a lot more money in my super fund than in my day trading fund. The purpose of both funds is very different.
My investment trading fund, as much as I wanted to, I could afford to lose it tomorrow. It wouldn’t spoil it for me. The last thing I want to do is lose all the money in my super fund. I’m so conservative and so defensive, and I think I’m in my super fund much longer than I am in a day trading fund. So, completely different goals and for me they require completely different approaches. The size of the trading fund affects your entire approach to trading. While all the same rules of effective trading apply, the most prominent ones are nipping losses in the bud and allowing your profits to grow; you have adapted the way you apply these rules for maximum benefit and profit.
I want my super fund to grow and grow, so if I can legally tap into it, everything will be here and working for me.
The question was asked about putting the stops differently. We all have the same rules for taking profit and loss, but how we apply these rules in different trading styles is very different. So of course I use very different stops in my super fund and one won’t work with the other.
David: Do you use the same calculation method in your super fund as you do in your CFD trading fund? Obviously the width will vary, but are you going to use the same calculation method?
Stewart: Same method, no. I use a volatility basis for my super fund and a technical stop for short term trading. Investment trading often requires the use of various techniques to be profitable. We must be able to adapt our trading style to our individual circumstances.