Money Management is one of the most important aspects of trading. Many news traders ignore it only to take it seriously after blowing their accounts. In my opinion, the most important aspect of trading is money management and risk management. Most traders take money management wrong. When we talk about making 500 pips or 1000 pips in a month, we are not talking right. Pips are meaningless. What we should be talking is the return that we are making daily, weekly or monthly. Without proper money management, you will often find yourself losing and wiping out the gains that you made in the last few days, weeks or the last month. So be very serious when it comes to money management.
Money Management Strategies
What you need is a sound methodology for applying money management strategies. Download this Money Management Strategy Strategies For Serious Traders PDF FREE. In this Money Management Strategies For Serious Traders by David Stendahl, you will learn not only how much to risk but also how to evaluate the performance of your trading system. Once you have found a good trading system, you need to optimize it for maximum gain while at the same time lowering the risk per trade. This can only be done if you have a sound money management methodology. Money Management Strategies For Serious Traders PDF explains how you can improve the performance of your trading system using sound money management strategies. In this PDF, you will learn:
Money Management Tips
System Analysis: In this section, you will learn how to gauge the overall performance of a trading system.
Total Trade Analysis: In this section, you will learn how to evaluate the overall performance of a trading system by critiquing each trade in general from both optimistic as well as pessimistic perspective. This includes run up as well as the draw down.
Total Trade Stability: In this section, you will learn how to graph the profit in $$ vs the total number for all trades.
Annual Trading Summary: In this section, you will learn how to determine the general overview of the systems trading performance. You will learn how to evaluate the trading system over different time periods in order to ensure its consistent performance.
Monthly Trading Summary: In this section, you will learn how to determine the performance of a trading system on a monthly perspective.
Equity Curve Analysis: Learning how to do the Equity Curve Analysis will provide valuable insight into the performance of your trading system.
If you are a serious trader and want to take up trading seriously no matter what market you trade, you should download this Money Management For Serious Traders PDF and go through it. You can keep it as a reference and use it again and again as you develop your trading skill.
There is no doubt about it money management could make or break your account. I have learned this 1st hand many times over .
What do I mean? I have blown up many accounts, not using proper money management. Trading too big per trade, trading too much and so on. I talk more about that in a later article.
I talk more about that in a later article. But for now I want to just brush over, a sneak peak if you will. A new piece of software, we have developed to stop this in its tracks.
Taking the guess work out of your lot size and setting daily targets. The software is called Forex4caster , and was built by my trading partner Mike Tanton.
More to come in later post .