- Money Management Articles (ActionForex.com) -

Educational articles on money management. Available in ...

Last Update: Sat Jan 12 22:33:26 2008

- The Importance of the Risk:Reward Ratio - Trader A has a win percentage of 75% on all trades while trader B has a win percentage of closer to 40% on all trades. ...

- The Single MOST IMPORTANT Aspect of Futures Trading - Okay, traders: Do you know what is the most important aspect of successful futures trading? Is it identifying the [...] Is it the trading "tools" you are using? Is it an exit strategy that is the most important aspect of trading? The...

- Don't Hold Your Breath Too Long While Under Water - The headline of this educational feature pertains not to swimming but to trading. Most professional traders do not hold [...] most professional traders will immediately begin looking for an exit strategy­-if they do not already have one...

- The Why Wall Street Doesn't Know About Position Sizing - This week I'm going to be a little controversial because I'm going to put forth some rather bold statements. First, it [...] system to make outstanding rates of return (50-100% or more) through position sizing. Second, if you have too...

- The Importance of Position Sizing 2 - You lose whatever you risk when tails comes up and you win twice what you risk when heads comes up. If R stands for you ...

- The Importance of Position Sizing - I did a retreat with one of the world's greatest traders in 1989. At that retreat he talked about a simple trading ...

- Position Sizing Continued - osition sizing is that part of your system that tells you “how much” throughout the course of the trade. And, assuming [...] psychology, controls about 90% of the variability of your performance in trading. THAT'S HOW IMPORTANT IT IS....

- Position Sizing Is More Important Than You Think - Before we discuss this topic, let me give you some important background information. I tend to think of trading systems [...] the average R (or mean R) of the system's R-multiple distribution is the expectancy of the system. It tells you what...

- Every Trading System Can Be Described By the R-multiples It Generates - Last week I talked about determine your initial risk for each trade and how you could express your profit and losses as [...] I recommended that you always have a bail-out point before you enter into a trade, but if you haven't done that then...

- Start Thinking In Terms of Risk-Reward - One of the cardinal rules of good trading is to always have an exit point before you ever enter into a trade. This is ...

- Keeping Some Fire Power In Reserve - Reserves are funds in our account that are held back from trading, and usually parked safely on the sidelines in [...] to reduce net leverage. A workable rule of thumb that has evolved over time out of the real-world trading arena is...

- Pyramiding: A Risky Strategy - Pyramiding is adding to positions as price moves in the desired trend direction. Pyramiding is a highly aggressive [...] the discipline to execute a tested plan consistently. Pyramiding should be executed only according a predetermined...

- Employing Protective Stops to Manage Your Trades - There is no absolutely perfect money-management tool in futures trading, although purchasing options on futures does [...] options does have its disadvantages, however, and I won't go into that in this feature. What I will focus upon in...

- Pyramiding ? When and When Not to Do it - A frequent question I get from less-experienced traders is: "Should I add futures contracts to my existing market ...

- Seven Time-Tested Money Management Rules to Insure Survival over the Long Run - 1. Always Preserve Capital. Traders should limit loss to 1% of total capital for any one position. 2. Always trade in [...] most emphasis on the Primary Tide that lasts many months or years. In a Bull Market, look only for opportunities to...

- Money Management by Joe Ross - There are some common mistakes I’ve seen traders make in the area of money management. First, let’s [...] and personal management, yet it has many aspects that make it unique, distinctly different from all of the other...

- Some Practical Thoughts About Money Management - We get a lot of questions about various complex money management (MM) formulas and our preferences. We don't comment on [...] personal issue that it would be impossible to give any universal advice that would be specific enough to have value....

- Forex Money Management - Money management is a critical point that shows difference between winners and losers. It was proved that if 100 [...] with 60% winning odds, only 5 traders will be in profit at the end of the year. In spite of the 60% winning odds 95%...

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