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

DailyGrommet asked:

It turns out that the best money management tool and personal finance software is completely free. Daily Grommet is featuring Mint.com, founded by Aaron Patzer, who came up with the idea back in 2005 while using Quicken to do his personal budgeting. After several hours he still couldn’t answer two key questions: How much did I spend this month? And on what? (Sound familiar?) He decided he could create something better for managing personal finances. Patzer’s award-winning website budget and money management website helps you consolidate all of your accounts into one easily-viewable dashboard (it even offers a handy iPhone app). Get the whole story at www.dailygrommet.com

Paula

hstrijew asked:

See the difference between this and normal accounting software: Money Management Solutions software — business financial management system to control cash flow, increase company income, reduce debt, make higher profits and achieve financial goals www.moneymgmtsolutions.com

Andrea

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