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Old 09-25-2007, 08:02 AM
gilgelad gilgelad is offline
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Re: Money Management: The True Holy Grail

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Reav - that 5% interest you are talking about is ANNUALLY. I doubt there's many brokers paying 5% monthly. So, if you risk 5% per month and let's say lose in 1 month, the ANNUAL interest will cover some of it. Keep in mind that since that 5% is paid annually, it is paid on the revolving balance - if the balance goes down, so does your interest.

As a side note, very few futures brokers pay you interest on money parked with them.
First of all you have to entrust people (if you are going to give money to other people), but I am sure that MM is a very important in trading... As for me, so I trade using 10% of my deposit... but if you are using a big part of your deposit, so it is very easy to lose everything...
more that 10% can use only professional traders who can be sure in their risk.

And for all beginners, MM is a VERY IMPORTANT part of the trading...

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