For traders, learning risk/reward ratio in trading is worth your time and essential for trading success. In daily live, we unconsciously weight risk before we do anything, including buying something, quitting your job or even putting your hand on hot stove. However when it comes to trading, traders are often careless about this. If you [...]
Posts Tagged ‘Money Management’
How to Place stop loss for short-term trading?
Posted by Taro on May 13th, 2010
The very first question traders should ask themselves before enter a trade is “Where is my stop loss point?” Find your stop loss and evaluate your risk. If the stop is too far away from the entry point or it is further from the entry than the target point, do not enter the trade! There [...]
Posted in Technical Analysis 
Tags: Money Management, Stops, Technical Analysis, Trading System 
No Comments »Applying Martingale Betting System in Trading
Posted by Taro on April 7th, 2010
Martingale is a well-known money management system used in gambling. I used to talk about it before in one of my money management articles. This time I will confess to you my experiences of using the martingale system.
Secret of Setting Exits in Trading
Posted by Taro on November 15th, 2009
Whenever traders enter a trade, they must have 3 factors clear in their mind; where to get in, where to take profits, and where to cut and run if market turns against them. The secret of exiting a trade for professionals is to plan their exits. Before entering a trade, professionals set their specific target [...]
Posted in Technical Analysis Tags: Money Management, Stops, Technical Analysis, Trading System No Comments »How to Place Stops using the SafeZone?
Posted by Taro on November 3rd, 2009
Where traders should put their stops? This is one of the hardest questions in technical analysis. Stops have to tight enough to protect capital and also have to distant enough to keep clear of meaningless swing. If look at trading in engineering point of view, the concept of signal and noise in engineering can be [...]
Posted in Technical Analysis Tags: Money Management, Stops, Technical Analysis, Trading System No Comments »Introduction to Pyramid Trading System
Posted by Taro on August 29th, 2009
The Pyramid trading is a technique that allows traders to minimize chances of loss while enhance their ability to profit from “expected” market price movement at the same time. The Pyramid technique alone is not enough to build a profitable trading plan, a sound Money Management technique is also needed to help traders to control [...]
The 2% – 6% Money Management Rules
Posted by Taro on August 4th, 2009
The greater staying power of traders the greater chance to win. Traders have to stay in markets long enough to win trades. Money management plays an important role in helping traders to survive in markets. No one win every trades; money management help traders to reduce losses on losing trades. Moreover it also maximizes traders’ [...]
3 Basic Money Management Strategies
Posted by Taro on July 23rd, 2009
Psychology, Trading Tactics and Money Management are the 3 essential skills for successful trading. These skills can be learned but most traders tend to overlook the Money Management skills in trading. A good way to start learning the skills to manage money is getting to know the 3 basic strategies of Money Management.
Why Money Management is important in Trading?
Posted by Taro on July 11th, 2009
Successful trading consists of three factors: Psychology 50% Money Management 30% Market Analysis and Trading Systems 20% Most of traders spend most of their time looking for good trades and only focus in the last factor, Market Analysis and Trading Systems, which is the least influence on successful trading.
