Monday, August 25, 2008

Risk Management + Money Managent



Any Trading System that do not involves a good RM and MM attributes in its trade is a BAD one.


Its not all about how BIG u WON on the last trade but how BIG you protect you last trade. If you wanna take a risk, ask yourself


1. How big is the RISK

2. How big is the PROFIT


If a LOSS take away more than 50% of your last trade, then your RM is BAD.

If a WIN brings back 2 past loses of your trade, then your RM is GOOD.


Consider a trade of 10 entries.

If you are assured of profit in just winning 40% of the trades, the you have done well


The old saying...."He who laugh last laugh BEST".


Make your trade a COMPOUNDING PROCESS.


TRADE with just 2% of your account in any trade.


If you feel you are so sur of your trades and wanna win BIG.....then make it a process for the best result.


The BIGGER you earn the BIGGER you earn MORE....Just follow the process.


Hope this help in a way?

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