Traders Toolbox: Money Management Part 1 of 4 Revisited...

Posted on by lindsay

Trader's Toolbox

At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers.

The Trader's Toolbox posts are just another free resource from MarketClub.

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"Crucial but often overlooked, money management practices can mean the difference between winning and losing in the markets.

Plenty of books, manuals, and software packages will help you form and opinion of a market, but not many will tell you how to trade once you have decided to get long or short. The goal of money management is to increase the odds of high quality trades. And as we’ll see, leaving the money management variable out of your trading equation can lead to ruin, even if you’re correct about the market direction.

In a broad sense, money management can encompass those elements of trading outside the initial decision to get long or short in a given market or markets – that is, how many positions to put on, when to get out, where to place protective stops. More specifically, it refers to the strategic allocation of capital to limit risk and optimize trading performance in the long run. Allocation of capital can refer to how much money to put into any one market or how much money to risk on any one trade. These decision directly affect how many positions to put on and where to place stop orders...."

Revisit the Trader's Toolbox Post: "Money Management Part 1 of 4" here.

8 thoughts on “Traders Toolbox: Money Management Part 1 of 4 Revisited...”

  1. Hi,

    I'm not a member... I'm "shopping" at the moment, trying to evaluate if the Trade Triangles (TT) system is viable for my portfolio.
    I have to say, "So far, so good!"

    Yet, I have a hard time figuring out how to use TT in a sideway market.

    Easy when the trend is obvious: Use Monthly to buy, Weekly to go in-out of the market. That portion seems to work not too bad, but when the market trade sideways.... What do you use? Another technical indicator?

    Could you clarify this point?

    Thanks for any insight!

    1. Peter A,

      Thank you for your feedback.

      When you see the Trade Triangles move into a -55 or a +55 mode you want to use a technical tool like an oscillator to trade. MarketClub has several oscillator indicators that you can use. Give them a try, I think you might be surprised at how well they work.

      All the best,

      Adam

  3. Your thoughts about the money management will save millions of dollars ddaily
    if traders will heed it. My problem previously was not knowing when to exit a trade.
    But know I feel the best thing to do in most cases is to live some profits on the table for others so I can trade again tomorrow.
    Thanks

  4. Lindsay,

    I have a general question with regard to your Money Management topic...

    If I recall.....early sometime last year....Adam was producing videos on a quarterly basis....which showed a diversified basket of about 4 or 5 markets that MarketClub itself was holding positions on.

    I haven't kept up with the vidoes....

    Is this something that Allan is still doing on a quarterly basis....(reviewing the results via video recap).

    If so....could you post a hyperlink to the most recent quarterly recap?

    Thank you,
    -Mike in New York

    1. Hey Mike,

      Adam does still do the quarterly recaps, however his daughter's wedding popped up after the new year and we didn't get a chanced to complete the video.

      He should be returning today, so a video with the quarterly recap should be up very soon.

      I will make a personal note to send you the video as soon as it is complete.

      Thanks so much and give us a ring if you have any more questions: 1-800-528-7424 or [email protected].

      Best Wishes,

      Lindsay Thompson
      Director of New Business Development
      INO.com & MarketClub

  5. I just deleted by mistake the offer to have Free E-mail education on a whole list of trading knowledge. Things such as moving averages, stockastics, trend spotting and many more. Please try to that offer resent to me. ...if you know which one I mean.

    cheers,
    Ron

    1. Ron,

      I'm sorry, but I'm not 100% sure what you received, however I believe it is for Adam's complimentary Trading Course. It's a 10 part email series that covers a wide array of trading topics including the ones that you mentioned above. It's at no cost to you and you can get started today. Visit the link below and you should have no problems getting all set up.

      http://club.ino.com/join/lessons/?blogresemailcourse

      Best,

      Lindsay Thompson
      Director of New Business Development
      INO.com & MarketClub

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