MeetPips.com

When there is volatility in the market and price is moving all over the place, it can be very tempting to jump in and follow the crowd on a big move. However, such moves when found to be a dud can be quite painful and can lead to more emotional and poorly thought out trades. In the end, when the volatility is gone, and the market has corrected itself and begins to trend again, the true winner is the one who still has enough cash to play. There is no substitute for a good Money Management Strategy. Believe me, there were times when I lost so many trades in a row that I lost count, but all it took was a couple of good trades to break even again all do to excellent money management. In any sport or military strategy the best offensive is an excellent defensive strategy, and for us that is money management. Before I open a trade, my mind goes directly to how much can I lose on this trade, (must be 5% or less of capital.) 2nd to p/l ratio and 3rd, does price have enough room to move were I can eventually adjust my stop to break-even without getting stopped out prematurely. Some trades I make I will not post here because they take a lot of thought and have a lot of entries and stops and can be very difficult to follow. That is do to my money mangement stratgey. however when I find a fairly simple trade - which is usually the case, I will post it. Nonetheless, your strategy should be simple and easy for you to understand and soaked and bathed in discipline and patience. And in the end when the smoke clears, you'll be the one on top still holding the crown(cash).