Investing Super Funds
If you are having good results with your trading portfolio should you consider using the same techniques with your superannuation fund? What about calculating your stops? Do you do that differently with your super fund than you do with your trading fund?
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.
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.
You want your superfund to continue to grow so that when you are able to finally tap into it, all of the money will be there and you will be financially secure.
As far as setting your stops goes, you want to nip your losses in the bud and let your profits run no matter what you are trading, but when it comes to your superfund, the way you handle your stops is going to be very different. One method does not work for both types of investing.
What about the method of calculation for your super fund? Would you use the same one that you use for your CFD trading fund? The width would be different of course, but is the method the same?
Stuart: The same method, no. I use a volatility base for my super fund and a technical stop for my short term trading. Investment trading often calls for different methods to be profitable. We have to be able to adapt our trading style to match our individual circumstances. - 23218
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.
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.
You want your superfund to continue to grow so that when you are able to finally tap into it, all of the money will be there and you will be financially secure.
As far as setting your stops goes, you want to nip your losses in the bud and let your profits run no matter what you are trading, but when it comes to your superfund, the way you handle your stops is going to be very different. One method does not work for both types of investing.
What about the method of calculation for your super fund? Would you use the same one that you use for your CFD trading fund? The width would be different of course, but is the method the same?
Stuart: The same method, no. I use a volatility base for my super fund and a technical stop for my short term trading. Investment trading often calls for different methods to be profitable. We have to be able to adapt our trading style to match our individual circumstances. - 23218

