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.
We are not currently giving you MarketClub's daily updates, but we decided to keep you informed nonetheless. Adam has just finished with the Perfect "R" Portfolio. This portfolio represents a long term, conservative trading strategy (perfect for retirement, IRA and 401K accounts.) The Perfect "R" Portfolio recaps the big moves from 2010 in addition to the results from Q1 of 2011. If you are a more conservative trader, this is the portfolio for you!
Out of 136 teams one of my teams is currently in 9th place and another is in 11th. Last year we had one place in the top ten and that was 2nd. 