http://www.actionforex.com/ Tue, 07 Feb 2012 08:01:28 GMT FeedCreator 1.8.0-dev (info@mypapit.net) http://feeds.actionforex.com/~r/actionforex/CnrE/~3/Oy2DCXZwjXk/ How do you determine proper risk and reward in trading? I don't think anyone can ever provide a definitive answer to that question because its is akin to asking how many layers do you need to walk outside of my apartment in New York City in the winter. Right now <p><a href="http://www.actionforex.com/articles-library/money-management-articles/risk-and-reward-2009011775435/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/Oy2DCXZwjXk" height="1" width="1"/> Sat, 17 Jan 2009 16:51:59 GMT http://www.actionforex.com/articles-library/money-management-articles/risk-and-reward-2009011775435/ http://www.actionforex.com/articles-library/money-management-articles/risk-and-reward-2009011775435/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/oLZ3LcoZMXM/ Okay, traders: Do you know what is the most important aspect of successful futures trading? Is it identifying the trading opportunity? Is it proper entry into the market? Is it the trading "tools" you are using? Is it an exit strategy that is the most important aspect of trading? The <p><a href="http://www.actionforex.com/articles-library/money-management-articles/the-single-most-important-aspect-of-futures-trading-2007080326046/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/oLZ3LcoZMXM" height="1" width="1"/> Fri, 03 Aug 2007 10:22:10 GMT http://www.actionforex.com/articles-library/money-management-articles/the-single-most-important-aspect-of-futures-trading-2007080326046/ http://www.actionforex.com/articles-library/money-management-articles/the-single-most-important-aspect-of-futures-trading-2007080326046/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/tM6dsXEBOKE/ The headline of this educational feature pertains not to swimming but to trading. Most professional traders do not hold onto their losing positions for very long. Once a trading position goes "under water" most professional traders will immediately begin looking for an exit strategy <p><a href="http://www.actionforex.com/articles-library/money-management-articles/don%27t-hold-your-breath-too-long-while-under-water-2007062223744/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/tM6dsXEBOKE" height="1" width="1"/> Fri, 22 Jun 2007 10:38:03 GMT http://www.actionforex.com/articles-library/money-management-articles/don%27t-hold-your-breath-too-long-while-under-water-2007062223744/ http://www.actionforex.com/articles-library/money-management-articles/don%27t-hold-your-breath-too-long-while-under-water-2007062223744/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/7x3Y0FkDX8o/ This week I'm going to be a little controversial because I'm going to put forth some rather bold statements. First, it is possible with small amounts of money and a reasonable trading system to make outstanding rates of return (50-100% or more) through position sizing. Second, if you have too <p><a href="http://www.actionforex.com/articles-library/money-management-articles/the-why-wall-street-doesn%27t-know-about-position-sizing-2007060122604/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/7x3Y0FkDX8o" height="1" width="1"/> Fri, 01 Jun 2007 09:49:41 GMT http://www.actionforex.com/articles-library/money-management-articles/the-why-wall-street-doesn%27t-know-about-position-sizing-2007060122604/ http://www.actionforex.com/articles-library/money-management-articles/the-why-wall-street-doesn%27t-know-about-position-sizing-2007060122604/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/jUXWEGP-524/ You lose whatever you risk when tails comes up and you win twice what you risk when heads comes up. If R stands for you risk, this system is characterized by the two R-multiples it generates: 1) 1R (when you lose, you lose what you risk and R stands <p><a href="http://www.actionforex.com/articles-library/money-management-articles/the-importance-of-position-sizing-2-2007052522258/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/jUXWEGP-524" height="1" width="1"/> Fri, 25 May 2007 10:59:15 GMT http://www.actionforex.com/articles-library/money-management-articles/the-importance-of-position-sizing-2-2007052522258/ http://www.actionforex.com/articles-library/money-management-articles/the-importance-of-position-sizing-2-2007052522258/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/zV-GSM732WE/ I did a retreat with one of the world's greatest traders in 1989. At that retreat he talked about a simple trading system. It was a system in which you flipped a coin. If the coin came up heads, you won twice what you bet. If the coin came up <p><a href="http://www.actionforex.com/articles-library/money-management-articles/the-importance-of-position-sizing-2007051821893/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/zV-GSM732WE" height="1" width="1"/> Fri, 18 May 2007 09:53:15 GMT http://www.actionforex.com/articles-library/money-management-articles/the-importance-of-position-sizing-2007051821893/ http://www.actionforex.com/articles-library/money-management-articles/the-importance-of-position-sizing-2007051821893/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/ZMOuYCSFhco/ osition sizing is that part of your system that tells you <p><a href="http://www.actionforex.com/articles-library/money-management-articles/position-sizing-continued-2007040519786/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/ZMOuYCSFhco" height="1" width="1"/> Thu, 05 Apr 2007 13:51:53 GMT http://www.actionforex.com/articles-library/money-management-articles/position-sizing-continued-2007040519786/ http://www.actionforex.com/articles-library/money-management-articles/position-sizing-continued-2007040519786/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/zX6Se0Y_f7Y/ Before we discuss this topic, let me give you some important background information. I tend to think of trading systems by the distribution of R-multiples that they generate. And the average R (or mean R) of the system's R-multiple distribution is the expectancy of the system. It tells you what <p><a href="http://www.actionforex.com/articles-library/money-management-articles/position-sizing-is-more-important-than-you-think-2007033019520/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/zX6Se0Y_f7Y" height="1" width="1"/> Fri, 30 Mar 2007 09:16:47 GMT http://www.actionforex.com/articles-library/money-management-articles/position-sizing-is-more-important-than-you-think-2007033019520/ http://www.actionforex.com/articles-library/money-management-articles/position-sizing-is-more-important-than-you-think-2007033019520/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/ZkDXPeKbB3A/ Last week I talked about determine your initial risk for each trade and how you could express your profit and losses as a ratio of that initial risk. I recommended that you always have a bail-out point before you enter into a trade, but if you haven't done that then <p><a href="http://www.actionforex.com/articles-library/money-management-articles/every-trading-system-can-be-described-by-the-r-multiples-it-generates-200604136408/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/ZkDXPeKbB3A" height="1" width="1"/> Thu, 13 Apr 2006 15:42:41 GMT http://www.actionforex.com/articles-library/money-management-articles/every-trading-system-can-be-described-by-the-r-multiples-it-generates-200604136408/ http://www.actionforex.com/articles-library/money-management-articles/every-trading-system-can-be-described-by-the-r-multiples-it-generates-200604136408/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/dQWnHx7F-vo/ One of the cardinal rules of good trading is to always have an exit point before you ever enter into a trade. This is your worse case risk for the trade. It's the point at which you would say, "something's wrong with this trade and I need to get out <p><a href="http://www.actionforex.com/articles-library/money-management-articles/start-thinking-in-terms-of-risk-reward-200604076265/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/dQWnHx7F-vo" height="1" width="1"/> Fri, 07 Apr 2006 12:53:27 GMT http://www.actionforex.com/articles-library/money-management-articles/start-thinking-in-terms-of-risk-reward-200604076265/ http://www.actionforex.com/articles-library/money-management-articles/start-thinking-in-terms-of-risk-reward-200604076265/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/ZKx0Ll2puCk/ Reserves are funds in our account that are held back from trading, and usually parked safely on the sidelines in risk-less money-market instruments. The effect of holding reserves is to reduce net leverage. A workable rule of thumb that has evolved over time out of the real-world trading arena is <p><a href="http://www.actionforex.com/articles-library/money-management-articles/keeping-some-fire-power-in-reserve-200603175683/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/ZKx0Ll2puCk" height="1" width="1"/> Fri, 17 Mar 2006 11:59:19 GMT http://www.actionforex.com/articles-library/money-management-articles/keeping-some-fire-power-in-reserve-200603175683/ http://www.actionforex.com/articles-library/money-management-articles/keeping-some-fire-power-in-reserve-200603175683/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/Lul2Y6-vK5I/ Pyramiding is adding to positions as price moves in the desired trend direction. Pyramiding is a highly aggressive trading strategy suitable only for full-time professional traders who know how to control risks and have the discipline to execute a tested plan consistently. Pyramiding should be executed only according a predetermined <p><a href="http://www.actionforex.com/articles-library/money-management-articles/pyramiding:-a-risky-strategy-200603035356/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/Lul2Y6-vK5I" height="1" width="1"/> Fri, 03 Mar 2006 13:24:26 GMT http://www.actionforex.com/articles-library/money-management-articles/pyramiding:-a-risky-strategy-200603035356/ http://www.actionforex.com/articles-library/money-management-articles/pyramiding:-a-risky-strategy-200603035356/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/qSGJKyba1iA/ There is no absolutely perfect money-management tool in futures trading, although purchasing options on futures does limit your risk of loss to the amount paid for the option. Purchasing options does have its disadvantages, however, and I won't go into that in this feature. What I will focus upon in <p><a href="http://www.actionforex.com/articles-library/money-management-articles/employing-protective-stops-to-manage-your-trades-200602104840/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/qSGJKyba1iA" height="1" width="1"/> Fri, 10 Feb 2006 12:08:39 GMT http://www.actionforex.com/articles-library/money-management-articles/employing-protective-stops-to-manage-your-trades-200602104840/ http://www.actionforex.com/articles-library/money-management-articles/employing-protective-stops-to-manage-your-trades-200602104840/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/zYHDZIKBU3w/ A frequent question I get from less-experienced traders is: "Should I add futures contracts to my existing market position?" That's a broad question and there is no single right answer. So, let's break down the question into some scenarios. <p><a href="http://www.actionforex.com/articles-library/money-management-articles/pyramiding-%3f-when-and-when-not-to-do-it-200512303859/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/zYHDZIKBU3w" height="1" width="1"/> Fri, 30 Dec 2005 12:13:50 GMT http://www.actionforex.com/articles-library/money-management-articles/pyramiding-%3f-when-and-when-not-to-do-it-200512303859/ http://www.actionforex.com/articles-library/money-management-articles/pyramiding-%3f-when-and-when-not-to-do-it-200512303859/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/cgVfI_feyM0/ 1. Always Preserve Capital. Traders should limit loss to 1% of total capital for any one position. 2. Always trade in the direction of the larger trends, with the most emphasis on the Primary Tide that lasts many months or years. In a Bull Market, look only for opportunities to <p><a href="http://www.actionforex.com/articles-library/money-management-articles/seven-time-tested-money-management-rules-to-insure-survival-over-the-long-run-200512233790/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/cgVfI_feyM0" height="1" width="1"/> Fri, 23 Dec 2005 23:25:58 GMT http://www.actionforex.com/articles-library/money-management-articles/seven-time-tested-money-management-rules-to-insure-survival-over-the-long-run-200512233790/ http://www.actionforex.com/articles-library/money-management-articles/seven-time-tested-money-management-rules-to-insure-survival-over-the-long-run-200512233790/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/z4F7ZrE975E/ There are some common mistakes I&rsquo;ve seen traders make in the area of money management. First, let&rsquo;s understand what money management is all about. Money management overlaps with risk, trade, business, and personal management, yet it has many aspects that make it unique, distinctly different from all of the other <p><a href="http://www.actionforex.com/articles-library/money-management-articles/money-management-by-joe-ross-20050129687/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/z4F7ZrE975E" height="1" width="1"/> Sat, 29 Jan 2005 09:17:22 GMT http://www.actionforex.com/articles-library/money-management-articles/money-management-by-joe-ross-20050129687/ http://www.actionforex.com/articles-library/money-management-articles/money-management-by-joe-ross-20050129687/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/npEWfZiKXuc/ We get a lot of questions about various complex money management (MM) formulas and our preferences. We don't comment on this subject very often because money management is such a personal issue that it would be impossible to give any universal advice that would be specific enough to have value. <p><a href="http://www.actionforex.com/articles-library/money-management-articles/some-practical-thoughts-about-money-management-20041108192/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/npEWfZiKXuc" height="1" width="1"/> Mon, 08 Nov 2004 21:42:14 GMT http://www.actionforex.com/articles-library/money-management-articles/some-practical-thoughts-about-money-management-20041108192/ http://www.actionforex.com/articles-library/money-management-articles/some-practical-thoughts-about-money-management-20041108192/ http://feeds.actionforex.com/~r/actionforex/CnrE/~3/mlZYu1Nr9cM/ Money management is a critical point that shows difference between winners and losers. It was proved that if 100 traders start trading using a system with 60% winning odds, only 5 traders will be in profit at the end of the year. In spite of the 60% winning odds 95% <p><a href="http://www.actionforex.com/articles-library/money-management-articles/forex-money-management-2004101887/">Read more...</a></p><img src="http://feeds.feedburner.com/~r/actionforex/CnrE/~4/mlZYu1Nr9cM" height="1" width="1"/> Mon, 18 Oct 2004 21:26:26 GMT http://www.actionforex.com/articles-library/money-management-articles/forex-money-management-2004101887/ http://www.actionforex.com/articles-library/money-management-articles/forex-money-management-2004101887/