The most important factor in successful trading

[seikonan]

The most important factor in successful trading is money
management. One still has to be savvy at chart forecasting and-or
fundamental analysis, but it's the money management factor that
will make or break a trader.

Over the years, I have listened to the best traders in the
business talk about what makes them succeed in this challenging
arena, and nearly every one emphasizes the importance of sound
money management.

Surviving in the market absolutely requires practicing sound money
management. Even a rookie trader who starts out with a hot hand
will eventually find that at least some trades are not going to go
his way. And if he has not employed good money management
principles on those losing trades, he will likely have squandered
his trading profits and his entire trading account.

Conversely, the novice trader who uses good, conservative money
management techniques will be able to withstand some losses and be
able to trade another day. The ability to take a loss and trade
another day is the key to survival--and ultimate success-- in the
futures trading arena.

Here's an important point to consider, regarding money management
and successful futures trading: Most successful futures traders
will tell you that during the span of a year they have more losing
trades than winning trades. Then why are they successful? Because
of good money management. Successful traders set tight stops to
get out of losing positions quickly; and they let the winners ride
out the trend. On the balance sheet, a few big winning trades will
more than offset the more numerous small losers. Good money
management allows for that to happen.

Here are just a few very general money-management guidelines:

-- For smaller-capitalized traders, don't commit more than one-
third of your trading capital to one trade. For medium- and
larger- capitalized traders, you should not commit more than 10%
of your capital to one trade. The guideline here is, the larger
your trading account, the smaller your commitment should be to one
trade.

-- Use tight protective stops in all your trades. Cut your losses
short and let the winners ride the trend.

-- Never, never, never add to a losing position.

-- Your risk-reward ratio should be at least three to one. In
other words, if your risk of loss is Rs. 1,000, your profit potential
should be at least Rs. 3,000.

I can't stress enough that survival in the trading arena
(especially for beginners) should be your top priority.
And this can only be done with proper money management principles

 

[Cayiema]

Hurm.. Betul2..

10% Was The System, 60% Was The Money Management & 30% Was The Phsycology! Hahahaha.. )

 

[hello966]

money management is subjective.... u can trade 5%, 10% or higher of ur margin... all depends on your risk appetite...

 

[ForexBomoh]

MM is very important. Another important area is trading method. Keep it as simple as possible as it will be more robust and can be used over variety of trading situation such as trending, sideways and etc.

There are people who use 5 to 6 indicators with all sort of lines drawn on their charts. This makes the trading looks very complicated and many people hesitate to open a position because 50% of the indicators may say ok and another 50% say k.o and this confuses the trader. Waiting for all the indicator to go green is going to take forever and traders become inpatient. I personally trade with one secret indicator of mine and standard rsi indicator. Only 2.

Keep it simple guys...

 

[manisan]

Trading
MM - 35%
System - 35%
Discipline - 30%

Decision Making
Execution - 5%
Research/Study - 95%

personal view.

 

[ammal07]

bagi saya analisis yang penting sekali,analisis kalau betul dah tentu untung,bermakna kita tahu trend dan kita ikut trend,

analisis kalau salah, mm 1% pun boleh floating ribu ribu pips, akhirnya MC juga..

 

[ahko]

I think the most important is the attitude while we make trading and also make decision.

 

[quartz]

Most important thing while trading is management of funds, every one does trading but the trader who do it according to a plan of risk and reward ,he should be aware of loss and possible profits too. This skill is called risk management that help you to protect your capital.

 

[abu85]

Most important thing while trading is management of funds, every one does trading but the trader who do it according to a plan of risk and reward ,he should be aware of loss and possible profits too. This skill is called risk management that help you to protect your capital.

very agree with u...dont overtrade in trading..

 

[SanaFx]

very agree with u...dont overtrade in trading..

Kita harus menghindari melakukan lebih perdagangan sebagai yang sedang dianggap sebagai bentuk berisiko perdagangan.:-?