“The creation of speculator’s wealth comes from how they manage money, not some magical mysterious system or alchemist’s secrets.
Successful trading makes money and successful trading with proper money management can create immense wealth!”
When people first come to trading the first thing they seek is the shiniest and fanciest trading system. The thinking goes if they can just find the latest and greatest system all their dreams will come true and the millions will come rolling in.
Does it sound familiar?
It’s true that a solid a trading strategy is needed to make money but if you don’t have a proper money management technique to manage your risk then the best trading system in the world is not going to help you to show profits.
We have all heard the statistics that something like 90% of traders fail to make money. Do you think so many fail because they trade bad entry strategies? Or perhaps they fail because they
- Risk too much
- Cut the winners short
- Hold onto their losses
- Get margin calls
The average novice trader lasts 6-12 months before he gets a margin call. Getting a margin call means the trader clearly didn’t have any clue about risk management. He put everything on one horse. This kind of failure has nothing to do with his trading strategy.
True or false?
The accuracy of a system has little to do with profits.
The most common reason for a trader to fail is down to
bad money management or pure lack of it
Why should you learn risk management?
Because it's essential!
Trading has many very important pillars that you need to fully understand and employ to achieve your goals. Managing your risk is by far the most important one. Because...
"Great strategy with bad risk management will blow up one day"
Money management is a crucial component to the trading process. Nevertheless, many traders either ignore or simply refuse to understand how important it is. They focus on other aspects like entry strategies instead.
An accurate trading strategy is simply not enough to generate income and bad money management destroys many accurate trading strategies
Start focusing on what happens after you enter the market. This is where you going to make real cash OR fail big time!
Who is the course for and...
What's here for YOU
The purpose of this course is to teach you how to treat your money while trading. How to make sure that maximum profits are achieved in winning trades and how to limit your losses. The course will teach you the right approach to protecting your hard-earned money in trading. It will also teach you useful techniques to limit your losses and preserve your capital.
In this course, you will learn:
- What is risk management and why is it going to make or break you
- How to use statistics to find, calculate and improve your edge in trading
- What metrics to use and focus on to improve your performance
- A few handy techniques to maximise your potential gains and limit your losses
- And much more...
Benefits of learning
Risk and money management
It looks after your downside and allows your upside to take care of itself
This is exactly what Paul Todor Jones meant. Proper risk management takes care of your losses, while ensures the upside takes care of itself.
Protection from losses but also a tool to recover from draw-downs
Proper risk management not only protects your capital from destruction but also ensures the swift recovery from draw-downs. You need a tool to provide you with confidence when you run into periods of losing trades.
Helps you to make sound decisions in an unpredictable environment
When you clearly define your risk and control measures, you will have a clear expectation of future outcome. Your mind should not be clouded and your decisions will be made based on statistics. Your heart will not beat faster with another loss.
Are you picking up dollars or creating wealth?
You need to devise your money management system to be able to maximise profit opportunities the market gives you. If you go in and out catching a few pips here and there, it's unlikely you will survive in the long run.
You can’t improve if you can’t measure
If you cannot measure something, you cannot improve it. You should know all the statistics of your system before you trade it. The most important stats should include: risk and reward ratio, expectancy, biggest loser, biggest winner.
Here is what we are going to cover
As usual, I have laid it out in a simple to understand and easy to follow format. The Course is practical and actionable. No fluff.
( click each section to reveal more details about each lesson)
StartLesson 1: What is risk and money management and why is it important to you
StartLesson 2: How to use statistics to find, calculate and improve your edge in trading.
StartLesson 3: Random distribution of good and bad luck. How to deal with drawdowns
StartLesson 4: Risk and Reward ratio – How money is made in Forex
StartLesson 5: Stop losses and taking profits. Handy Techniques to maximise your gains and limit your losses
StartLesson 6: Position sizing. Two different approaches to risk size and which one is best
StartLesson 7: Position splitting. How else would you catch big moves?
StartLesson 8: Money management - the most common pitfalls and how to avoid them
StartLesson 9: Handy techniques to limit losses in Forex