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Thursday, February 19, 2009

Money Management: Strategies and Account Size

"People who don't take risks generally make about two big mistakes a year. People who do take risks generally make about two big mistakes a year" - Peter Drucker

To date in the money management series, we have explored the founding principles of money management. Risk Analysis, Reward Analysis, Trade Management, Drawdown, Accuracy Rates and Performance Analysis. We talked about Strategies and the need to find an edge to the market, or a bias, and to massage that bias. Those principles are the foundation.

Now let's switch gears a bit, and build on the foundation of money management when it comes to trading. We'll do that by focusing on your account size.

We discuss that in this vlog entry ...

(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click this link to view the entry ...)



Here is the link to the blip.tv version of this video.

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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