Tag: risk management

Two Crucial Keys for Trading

Posted on by The INO.com Team

Today's guest is Chuck Hughes of Wealth Insider Alliance. Chuck is going to discuss a simple way to kill two birds with one stone in this post on risk management. Be sure to comment on this post and let us know what tricks you use.

------------------------------------------------------------------------------------------------------------------------------

Does this phrase sound familiar?

"Watch the downside, and the upside will take care of itself."

That's what John Paulson's mentor and former boss, Marty Gruss, constantly drilled into his head.

Or, to put it in the words of Warren Buffett, "Rule 1: Never lose money.  Rule 2: Never forget rule No. 1."

What is the best way for you to minimize your downside and launch your success rate – and your profits – through the roof?

Actually, there are several ways… and two of them are absolutely crucial.  They defy human nature, but are absolute MUSTS for trading success.

In order to achieve success you MUST practice sound risk management by doing at least two things in particular: Continue reading "Two Crucial Keys for Trading" →

Becoming a Full Time Trader (an Introduction)

Posted on by The INO.com Team

Many of you know about Norman Hallett from TheDisciplinedTrader.com, and if you don't you should! Today I've asked Norman to bring us some of his wisdom and insight when it comes to being a full time trader. Norman's been a full time trader, then managed a room of full time traders, so he knows what it takes to be one...and be a successful one! Please enjoy his article today and visit TheDisciplinedTrader.com for a special free copy of his book "Taming Risk", enjoy the article.

======================================================================

People fantasize about what it must be like to be a full-time trader. The picture is of a relaxed person sitting in a lounge chair on the foredeck of an expensive yacht docked in Newport Beach or somewhere in the Mediterranean. Armed with a laptop, a cell phone and a large pitcher of rum and chilled grapefruit, the trader (who looks remarkably like a buffed version of you) scans a graph that pops up on the screen. The trader then activates the cell phone and places an order. The cell phone is snapped shut followed by the laptop. The trader stands up, stretches and dives off the side of the yacht into clear warm water. Come to think of it, the yacht is in anchored in a beautiful inlet off Tortola. The water is warmer there.

The implications are clear: easy money, independence and unlimited wealth.

Continue reading "Becoming a Full Time Trader (an Introduction)" →

Day Trading E-mini Index Futures - 9 Key Trading Concepts

Posted on by The INO.com Team

Today I'd like everyone to welcome back Marc Nicolas from Tradingemini.com. Marc would like tip his hand a bit regarding his methods for trading the E-mini and how he tries to avoid being the 90% of traders that lose money! Please feel free to comment below with any questions or insight for Marc, and be sure and check out his site Tradingemini.com for a free webinar.

==================================================================

Trading is inherently risky, but by following nine fundamental money management rules, you keep your capital safe while building your trading experience.

Our 9 rules to keep you in the 10% winning club vs. 90% of traders who lose money:

1. Look for high volume markets with a thin spread - Orders are filled quickly and it has high volatility so there are opportunities for 2 to 4 good trades during the day. The E-mini S&P500 Index Future is a good example of this type of market (Each point is worth $50, split into 4 ticks of $12.50 and there are 4 contracts a year, traded on the Chicago Mercantile Exchange).

Continue reading "Day Trading E-mini Index Futures - 9 Key Trading Concepts" →

Why Do Most Forex Traders Fail: Risk Management

Posted on by The INO.com Team

I'd have to say that EVERYTIME Bill Poulos is a guest blogger, he gets almost as many comments and attention as Adam...ALMOST. Today should be no different. I called Bill and asked him to write an article on risk management in Forex. I read the article and it delivers, so you won't be disappointed. This article focuses on the method he uses and he's produced two videos (Flexible Forex Discovery VIDEO ONE.....Flexible Forex in Action VIDEO TWO) so check out the videos, enjoy the article, and let the comments fly as I told him he'll have to teach in the comment section!

=====================

When trading anything, risk management is first and foremost.  Without it you will lose, period.  When trading the Forex markets or any highly leveraged market, you must have a risk management plan that accounts for that leverage.

Forex broker’s are fond of touting the fact that they provide 100:1 or even 400:1 leverage, but the truth is, if a trader ever takes on position sizes that take full or even partial advantage of that leverage, the account will soon be wiped out.  That is because the maximum  % of one’s account size that could be risked on each trade allowed by the broker, would lead to excessively large position sizes and levels of risk far beyond what a good risk management system would allow.

Continue reading "Why Do Most Forex Traders Fail: Risk Management" →

10% Of Traders Go Bankrupt

Posted on by The INO.com Team

One of our most requested Guest Bloggers is Mark McRae, author of Traders Secret Code, and today I'd like you all to welcome him back! I've asked Mark to touch on a subject that most seasoned traders know, and rookie traders don't want to hear...most traders fail and a percentage of those failures turn into bankruptcy! Please read the article, comment to Mark or about the ideas, and check out Marks Traders Secret Code.

------------------------------------------------------------------------------------

I was thinking about an article I read some time ago that 90% of traders who ever trade lose their account and that 10% actually go bankrupt. If the first number doesn't scare you then the second definitely should.

Why is it then that there is such a large number of traders failing? It is not because they are stupid; in fact most traders have an above average IQ and are above average in most categories such as education and income. So why do they fail?

Lack of trading education! ( INO TV will help solve this problem!)

By education I don't just mean learning how RSI works or drawing lines on a chart. I mean thoroughly educating yourself in all aspects of your chosen profession.

Educating yourself on the correct psychological approach to the market! Educating yourself in the correct risk management techniques relative to your account size. Educating yourself in the correct entry and exit methods for the trading style that suits you.

This, my friend, is where I hope to be of some help. I don't have all the answers nor do I profess to be some kind of guru but I will do my best to point you in the right direction.

Continue reading "10% Of Traders Go Bankrupt" →