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Losses Prompts Money Mangement Discussion

Monday, 31. October 2005
 
This trade resulted in a loss. It broke support requiring an exit, but then recovers to entry point. It could be tempting to want to go long again but there is no setup so we must stay flat. Losing trades seem to bring up discussion regarding money management which is critical to the survival of a trader. The 20method utilizes Fixed Ratio Trading which means additional size is added with profits and decreased with losses. This is done by a pre-determined thresholds or delta defined by a formula. To learn more about the formulas and money management, read Ryan Jones the trading game. Trading Game by Ryan Jones 


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