Mon, Jan 18, 2021 @ 00:57 GMT
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Money Management

What Is the “Kelly Criterion” in Forex?

Put simply, the Kelly Criterion or Formula is a way to calculate how much of their assets a Forex trader should risk on any given trade in order to maximize the return. It became notorious among equities traders because it was said that Warren Buffet uses a version of it...

The Why Wall Street Doesn’t Know About Position Sizing

In the last two tips I've talked about the importance of position sizing. You've learned that: The most important questions you can ask yourself (other than questions about your personal psychology) is what are my objectives and how can I use the "how much" variable to meet my objectives. ...

Don’t Hold Your Breath Too Long While Under Water

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-if they do not already have...

The Single MOST IMPORTANT Aspect of Futures Trading

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?...

Risk and Reward

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...

How to Achieve Longevity in Forex Trading

Did you know most aspiring day traders quit within the first two years? And only a small group actually make it to their 3rd year of trading? Of course, this research is not exactly comforting, but the reasons for the lack of success of many traders may surprise you.