The final, and by far one of the most important factors to your success is money management (sometimes also referred to as position-sizing).
The final, and by far one of the most important factors to your success is money management (sometimes also referred to as position-sizing). To illustrate just how important it is to your final results, there has actually been a mathematical study which confirms that even completely random entries, based upon a coin toss and yielding only a 35% “win” ratio, can produce steady profits when combined with proper money management formulas.
As a matter of fact, to break it down by level of importance and influence, it can
be said that money management accounts for up to 50% of the final result.
Approximately 40% can be attributed to psychology, 8% to exits (including
targets, stops, and position management), which leaves 2% for entries – at best.
Full Report
www.forexhound.com/Uploads/Lesson10.pdf
Andrei Knight is a highly
sought-after
speaker and coachfor professional
traders and individual
investors alike, and holds international certifications as both
an NLP Practitioner, and a Professional Life Coach. He is the
author of "Trading
Forex for a Living",
and
has made frequent appearances at events such as the World Money Show,
the
Energy Forum, IX Investor, ShowFX World, and was the keynote speaker at
last
year's International Traders' Conference.
At
a very
young age Andrei was already playing in professional chess tournaments,
and
went on to further hone his strategic skills through years spent
studying Japanese
martial arts. From both worlds, he brings with him a unique perspective
to the financial markets, and routinely consults for high profile firms
who
specialize in investment and wealth management for musical artists,
sports
celebrities, and other ultra high net worth individuals and trusts.
In
addition
to his role as Chief Market Strategist for fxKnight.com,a website which provides free
tools and strategies for active traders (including live chat, strategy
forums,
training videos, worldwide market news, and streaming ForexTV), he is
also a
regular contributor to FXstreet,
DailyFX, ForexFactory's
FNN,BabyPips,
ForexPros,
and the International
Business Times, where he also sits on the advisory board.... More
