At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers.
The Trader's Toolbox posts are just another free resource from MarketClub.
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"Crucial but often overlooked, money management practices can mean the difference between winning and losing in the markets.
-Amount Of Money To Risk- It’s difficult to come up with hard and fast money to risk on different markets and trades. For our purpose, though, it’s best to think conservatively. Although some studies suggest initially allocating equity in broad terms of original margin (40% to 50% of total equity committed to the markets at a given time in the form of original margin, 15% to a particular market, 5% to a single trade, etc.), many traders consider these percentages too high, and do not consider the market to be a accurate measure of risk or a sound basis on which to allocate funds, because a trader can always, technically, lose more than the margin amount. These traders find it more beneficial to think in terms of the actual money amount they are willing to lose on any particular trade or trades, determined by their stop level or through some other calculation..."
Revisit the Trader's Toolbox Post: "Money Management Part 2 of 4" here.
Bernanke’s speech was a huge news story, and talk of QE2 ending / QE3 possibilities is going to be an even bigger spring story. So, we decided to get in on the fun, and think you should too! Guess what you think the exact number of the Dow (DJI) or Dollar (DX) value will be on the close of June 30, and the winner receives….
Are you a short term trader or thinking of becoming one? Then chances are, you don't want to miss this free video seminar by former Editor-in-Chief of Futures Magazine, Darrell Jobman! Darrell has become an acknowledged authority on derivative markets, technical analysis and various trading techniques. He has participated in the publication of about a dozen books on trading, and has written articles and trading courses for publications, brokerage firms, and exchanges.
