Money Management: The True Holy Grail

[gilgelad]

	Quote:	brownsfan019
	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...

[TacTrader]

My rule for trading the YM is to trade one contract for every 5k in account. This is daytrading only, no overnight positions. Maybe a little too conservative????, but that is what I have set up. Being a smaller trader I can't imagine one contract every $2500, but maybe as I get more proficient and the account grows I will be inclined to ramp it up a bit. Right now I am just trying to build up, pay off debt and park 2-3 years worth of living money so I can go full time...

Stephen

[Razzaq]

hi everyone,

Great Soultrader... i will must say it's a awesome post of yours'

thanks for the great technical information...

take care



_________________________ ______________
UAE & Dubai Real Estate & Property Portal | UAE & Dubai Business Services Directory
| Sports Wholesalers & Suppliers Directory | Something Directory