Joseph Barrington-Lew asked:




Protecting your Trading Capital!
More than 90% of people trading the share market lose money and the major reason is because the majority do not use correct Money & Risk Management principles.
Money Management, Position or Trade Sizing…
No matter what you call it, You Better Know It!
“Money Management is like sex: Everyone does it, one way or the other, but not many like to talk about it and some do it better than others. But there’s a big difference: Sex sites on the Web proliferate, while sites devoted to the science of Money & Risk Management are somewhat difficult to find.” Gibbons Burke

NEVER Risk any more than 2% of Trading Capital on any one trade. e.g. If you have $30,000 your maximum risk is $600 but what many forget is to also cater for brokerage. If it’s say $25 each way your maximum risk is now $550 and a stop is set appropriately so if your share drops in value by $550 you exit.

Never Trade with more than 20% of Trading Capital on any trade.
e.g. Again, if you have $30K your trade size would be $6000 but I prefer to use 19% so if I have 5 open trades and will still have 5% of my trading capital out of the market to allow for things like slippage, education, data, etc.

Here is a simple mistake many make in relation to Trading Capital?e.g. My first trade, using the above example, is now worth $7000, up $1000 so I decide to open my second trade. The correct method is to first determine the share value if current trailing/profit stop is hit. You may be up $1000 but your trailing stop is set and if hit you make less, say $900 so the next calculation would be based on $30,000 + $900.

“The only things in life that are certain is Death and Taxes!” Benjamin Franklin So it should be noted that past performance is not a reliable indicator of future performance but you can control the risk.

It’s the 21st Century and it’s quite normal to manage one’s own investments, yet very few implement disciplined, professional money risk management principles or understand them. During the stock market boom, limiting risk was always an afterthought, but given the recent volatility & market conditions, get serious!

Professional Money and Risk Management strategies, used correctly and in conjunction, will be your foundation to trading success. Essentially, Money Management tells you how many shares to trade at any given time and Stop placement is where you must accept you have made the wrong decision, close that trade and move on. It is a defensive concept that keeps you in the game to play another day. Don’t confuse Money Management with Stop placement. Stop placement does not address the question, how much?

Risk Management is the difference between success and failure when trading shares. It refers to Stop placement and will minimize any losses and you will have them but also maximise any profits and this stop is called a Trailing, Maintenance or Profit Stop.

Money Management optimizes capital usage. Few have the ability to view their portfolios as a whole. Even fewer traders and investors make the move from a defensive or reactive view of risk, in which they measure risk to avoid losses, to an offensive or proactive posture in which risks are actively managed for a more efficient use of capital. JBL Risk Manager will help you do all of the above and more very easily. JBL Risk Manager is a simple but Professional Money Risk Management program that was specifically developed to combat the above problem BUT unfortunately the trial is currently only available to those that receive or have access to MetaStock format data via the internet. It will automatically calculate your Trade Size, Stop Loss price, Trailing Stop, Break-even price and so much more, based on the last close. It will, of course, also allow you to change your anticipated buy price to actual buy price (slippage) It will indicate when to look for another trade and also automatically report on your performance by showing you your portfolio %win-loss ratios, average $win-loss, trade expectancy and much more, accurately. I hope you give this program a trial. After more than a decade helping novice and seasoned individuals understand the importance of Money Risk Management I am pleased to say this simple program will do that. JBL Risk Manager Version 7 now also incorporates multiple portfolios, Van Tharp performance monitors and much more.

You also have available to you a facility to enter a Technical Stop as your trailing Stop, if you wish, but after many years of testing and research I have found that most use Technical Analysis for entry and correct Money Risk Management for their exit. Long term investors may use Fundamental Analysis to find financially healthy companies first then TA for entry and MR Management for exit.

Why not trial JBL Risk Manager today at our website

I wish you all trading success!

Joseph

Judith

Jonathon Campbell asked:




Lately financial strain seems to be present on a daily basis in our lives because beyond the financial crisis hitting the world, more and more people are spending more than they earn via their credit cards and other credit instruments.

While lenders are confident that people with good credit scores will pay off their debts in a timely manner, inadequate management of our money makes us lose track on how much we are earning, how much we owe, how much we need to cover our daily needs and how much money we can allocate to repay our debt.

We are becoming indulgent with our spending in a time when we need to retake control over our money and here is where money management software can help us to create a budget and generate pointers to manage more efficiently and to stop falling into an avalanche of liabilities while retaining expenses under control.

Budgeting is easy, but may people are so scared of the simple word associating money management and budgets with accountants or financial advisors. You do not really need to hire a professional to help you organize your expenses, but you can always invest in a good money management software package to help with basic household financial activity.

Money management software facilitates the creation of reports, graphics, and listing results of a planned budget that can be easily modified and re-adjusted to reflect your real financial situation and preparing you to pay off your debt while implementing money-saving strategies.

This type of software helps you to track household expenses and create some money projections of future income versus outgoings, assisting you with your expenditures so you can accurately track where your money comes from and where it goes.

Spending and earning money seem to be activities so natural that some people believe time dedicated to track your money is waste of time. Nonetheless, understanding cash flow is the best way to avoid fall into the trap of using your credit card to supplement your income.

A budget serves like a guide to give you control over your finances and avoid overspending. Taking advantage of the capability of a money management application to generate it will mean easier record keeping, projections and allocate money to cover your needs.

Keeping control over your expenditures and money will not keep control over you, keeping in mind that a good money management software package will also provide you with useful personal finance information that will contribute to make wiser money decisions in almost any aspect of your every day life.

Pamela

Michael Russell asked:




Everyone that has ever worried about the state of their finances has worried about proper money management. Moreover, those individuals that like to keep a watchful eye on their finances also focus on good money management skills. Thus, good money management is a clear issue for anyone that wants to get and keep a firm handle on their personal finances. Thanks to technology, money management is an issue that can be easily handled with a personal home computer and a little bit of free time.

There are a number of money management software applications that computer users can purchase to make their budgeting and tracking a far simpler task than ever before. In fact, with software applications, computer users can manage their personal finances, their checking accounts, their bills, and can even manage their personal taxes with their home computer. Moreover, for those small business owners looking to maintain control over their business finances, software applications are readily available to help them stay on top of the money game.

With certain software applications, individuals can create and devise personal budget plans. They can decide what bills need to be paid and when and track all incoming and outgoing funds. A close analysis of all spending will be easily readable in a series of detailed charts. Thus, people can determine where their highest amount of spending is going and then adjust their budget to better suit their needs. Moreover, such software applications can help those individuals that are experiencing difficulty with their finances as they set up a plan to get their finances back under control.

Money managers can create their own calendars and set up automatic bill payment options with various software applications that are available on the market today. They can easily keep track of savings and with a number of predictive calendars, they can forecast their future financial position if they remain on course with their designed budget. What’s more, those who successfully manage to save money can later put their money into other investments and monitor those too.

Personal finances are certainly not the only thing that can be monitored with the use of software and a personal computer. Small business finances can also be tracked and a you can easily create invoices and record all spending transactions associated with a home-based business. Thus, clearly, the latest software applications can make keeping track of any and all financial matters a far simpler process than one might first imagine.

Finally, one of the greatest benefits from software applications that help track money issues are those derived at tax payment time. During tax preparation, the computer user can truly enjoy the benefit of the fine organizational offerings of software applications. Many of the programs will have all the information in one location and reports can be created that make tax reporting a far easier task. In the end, the cost of such applications is utterly nominal when one considers all of the benefits derived from their use.

Eleanor

ParkAveConsulting asked:

Trading Money Management Software for Stock trading has been made easy for all that have access to reliable MetaStock format data. For both beginners and seasoned traders and investors.Watch me set up my Portfolio, Deposit Initial Trading Capital and make 2 Long and 1 short trade in under 4 minutes, all explained along the way. JBL Risk Manager is now also available from Equis International and a FREE 14 day trial of the new version is now available at www.paconsulting.net.au/uploads/setup-EQ.exe Remove the emotion and guesswork from your trading decisions NOW. Use JBL Risk Manager to simplify your trading, save time & money, minimize losses & maximize your profits – starting today. Money Risk Management is vital, find out why, trial this simple but very sophisticated money management stock trading software here www.paconsulting.net.au/uploads/setup-EQ.exe and from resellers worldwide. How many times have you felt confident about your next trade but you were uncertain about just how many shares to buy? Have you ever been so cocky about your next trade that you have ended up buying far too many stocks to back your overconfidence? Then, have you sat there frozen like a kangaroo in the headlights while the trade falls instead of rising and your losses are mounting so quickly as you wonder when should you sell? I can assure you that you are not alone. It’s the 21st Century and it is quite normal to manage ones own investments, yet very few implement proven money risk …

Delores

ParkAveConsulting asked:

Money Management or Position Sizing… No Matter What You Call It, You Better Know It! Money Management is like sex: Everyone does it, one way or another, but not many like to talk about it and some do it better than others. In the 21st Century it’s quite normal to manage one’s own investments, yet few implement disciplined Money Risk Management principles or understand them. During the stock market bubble, limiting risk was always an afterthought, but given the recent price action and market conditions, it’s time to get serious! What is your exit strategy? Risk Management is Stop placement. Money & Risk Management, used correctly, is your foundation to proven trading success. JBL Risk Manager is a simple BUT Professional Money Risk Management program that WILL help you achieve financial success. Download and enjoy a FREE 14 day trial at www.paconsulting.net.au You will need access to Metastock® format data to use all the features correctly but not the Metastock® Charting Software

Roger

ParkAveConsulting asked:

Stock Trading Money Management software for STRESS FREE share trading For all that download or have access to MetaStock format data. For both beginners and seasoned share traders and investors in shares. JBL RM is now also available from Equis International and a FREE 14 day trial of the new version is now available at www.paconsulting.net.au/uploads/setup-EQ.exe Remove the emotion and guesswork from your trading decisions NOW. Use JBL Risk Manager to simplify your trading, save time & money, minimize losses & maximize your profits – starting today. Money Risk Management made easy, find out why, trial this simple but very sophisticated money management stock trading software here www.paconsulting.net.au/uploads/setup-EQ.exe and resellers worldwide. Be honest with yourself, now is the best time How many times have you felt confident about your next trade but you were uncertain about just how many shares to buy? Or have you ever been so cocky about your next trade that you have ended up buying far too many stocks to back your overconfidence? Then, have you sat there frozen like a kangaroo in the headlights while the trade falls instead of rising and your losses are mounting so quickly as you wonder when should you sell? I can assure you that you are not alone. It’s the 21st Century and it is quite normal to manage ones own investments, yet very few implement proven money risk management principles or understand them. During the stock market boom, limiting risk was always an …

Marc

Mika Hamilton asked:


Increasing wealth and net worth is about more then just making good investments or even “getting lucky”. The key to lasting wealth comes from good money management. Do you realize just how many people are millionaires? The numbers may surprise you. The person sitting next to you could very well be a millionaire. Your neighbor that lives across the street could also be a millionaire.

The most common misconception that most people have about the wealthy is that they always drive around in fast and fancy cars, take lavish vacations, and live on large estates. While that may be true of some people, but the majority of the wealthy live normal lives and go to normal jobs. The reason? They realize that uncontrolled spending can lead to uncontrollable credit and unfortunately as has been the trend, bankruptcy. There are several points that one could use to compare their wealth plan with their actions to see if they are truly heading in the right financial direction.

Do You Save? Sure everyone tries to save a little here and there, but to truly become a financial success a regular savings plan that is part of a well-balance budget. Saving money isn’t always easy. The advice of a financial advisor or even the use of money management software can help you plot a financial route. Planning for emergencies, educations and even mundane expenses should be part of a budget.

Certainly there are people who have stumbled upon their fortunes either by inheriting it hitting it big in the stock markets. That is a very rare occurrence and those who frivolously invest in every scheme imaginable to strike it rich usually just end up the complete opposite. Again proper money management is key.

Planning to save means that you determine now where you want to be and then follow in a patter of saving and investing that makes it possible to meet that goal. Of course a balanced portfolio utilizes more then just a savings plan. Investing in mutual funds and stocks should really carry and equal share of the load. Good money management also means controlled spending. A perfect example is that of an NFL player.

It is hard to believe that people who make enough in a couple of years for most of us to retire on would have any kind of money problems, but year after year players get themselves into financial binds and end up in the red. The reason is poor spending habits. Spending money on anything from a sports car and matching house for mom to an expensive dog house, they forget how important it is to save thinking they will always have enough. That is almost never the case. For these stars they should be saving more then they are spending in a year to be prepared for premature retirement or other emergencies. Only by controlling spending habits and developing solid money management skills can a person, star or not, ensure that they will be financially secure for the future.



Margaret