Before you read this I am going to point out at this time I am in all cash. I have done real well the last few weeks and I am going to sit back and watch, waiting for my next high risk higher return trade. Now back to my comments. ……….I have heard of Hunter for quite a while now. A few people I talk to casually had mentioned him before. Not because of the huge positions he took on but the fact he made $75 million or so and was barely 30. After reading the recent articles there is nothing in them that surprises me. Today I read one of Tradermike’s longest post in recent memories. He is completely right about everything he said. In summation he was way to risky and used no form of money management. Unfortunately this is something that goes on every day. Money management is surely the way to financial gain. The 2% rule is something that all daytraders and gamblers talk about (they are the same in many ways). How often is this followed? Hardly ever. There is a reason Mike is successful. He is a strict, conservative, trader. He will not be swayed by risk and fortune and will chip away slowly and upward. His two percent could be 2 thousand today but in time his 2% could be $20 thousand later, but it will take time. This is a marathon not a race. This is all well and good but many people don’t trade like this. They are reckless and risky. Amaranth knew exactly what they were getting with Hunter. He traded no different than he did in his previous job just in larger quantities. I traded in the pits, only a few years, but I saw these crazy guys everywhere. The 30 year bond pits were full of guys taking on huge, unhedged positions. There is only one way to make huge profits quickly, take huge risk. Many hedge fund traders have nothing to lose. If they make a giant profit they get to keep millions of it. If they lose, they send out a letter to their investors about the losses and take home nothing. Nothing to lose, everything to gain. They merely need to say “I’ve learned my lesson” and off they go to their new job. I took 2K and made it into 250K last year through high risk trading. The most I had to lose was 2K but I had a chance to make tens of thousands. I lost 100K in one month last month. If you talked to me and only knew I lost 100K you would say I was a reckless trader. What you didn’t know is that I still turned that 2K into quite a bit of money. I don’t have to live on my trading. You take as much risk as you can afford and stomach. Maybe Hunter made 10 billion the year before (he didn’t) and it all averaged out. In summation, there are tons of crazy traders out there. Most are addicted to trading and it takes bigger and bigger amounts for them to get their “buzz” Just make sure you are not one of them or you don’t have one managing your money. I am and so I always take money out of my account (a draw) and I don’t trade on margin. I now have a good account to trade with because I took lots of risk and did well. I still take more risks that most wouldn’t even think about but I am not going to lose it all on one trade. Not for everyone but sometimes it works and sometimes it doesn’t.