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Chapter 33, Part I. Risk Management Framework. Page 3

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 28, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Commander in Pips: That is risk and money management. A simple gambler could win an occasionally jackpot, but if he will try it again – he will spend all of this prize and have to add more to do it. Other gamblers also win from time to time but they always will stand in some loss, because statistics are not on their side.

    You probably know that there were some persons who have won in casinos, but what did they do? They apply statistics and count every step. This can let a few of them find ways to win.

    So, if you want to stay profitable in the long run, then you have to get statistics on your side and you have to apply such things that will turn the equilibrium in your favor at any possibility and any trade.

    Pipruit: Nice explanation sir. I think I’m starting to understand…
    How much money will I need to start?

    Commander in Pips: That’s good. So, if we have come to the conclusion that money management is must, from what should we start? I offer to move from general to specific. General is overall capitalization and planning of trading as a business. Here I have to send you to the chapter, where we’ve discussed this in details in Chapter 29. Part II. >>

    When you’ve estimated how much money you will need for starting this business and support it in long-term, then can talk about the specific issue – how much money should be in your trading account…
     
    #1 Sive Morten, Dec 28, 2013
    Lasted edited by : Oct 9, 2016
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