Money Management & Risk Control
Technically, you could make money with any approach to the market if you had good money management. Limit your risk to 1 point on every trade and take profits at 2 points with a system that is correct only 35% of the time and you will make money. you can even show that with a winning percentage below 50% as long as your expectancy ratio of wins to losses is large enough.
Our Futures Trading Secrets Course is jam packed with 188 pages, 69 chart examples and four audio video live demos that will show YOU:
How to use money management to improve your trading!
Trader’s First Practice Day 23 Wins 0 Losses
Hey Bill, well, this is really something! Your course came yesterday. I stayed up most of the night reading the PDF manual and then going over as much of the CD material as possible.
I have been using eSignal™ advanced get Edition software and eSignal™ data for several years and so I was very impatient to get Ensign Windows up and running.
I placed 23 SimTrades today using 1 contract. I was using the combo template with the 1xx and 5xx charts. I had 23 winning trades and no losers for a simulated profit of $1,012.00 on the day. I have no doubt some of these trades were just luck because I am still very fuzzy on some of the signals.
Needless to say this is going to be a jam-packed weekend of study to try and figure out exactly what is going on.
This is a lot of fun! Thanks Bill!
P.S. Wow, Bill, Did you trade that great divergence pattern on the 1xx chart just now? It completed around 15:37 and produces a great profit for anyone who happened to have been paying attention. Unfortunately I was too busy patting myself on the back for all the great winners today to notice this until after the fact.
Man-o-man!
Do you get results like these?
Use the SimBroker in Ensign on a Demo File until you can trade consistently with results of 70% or better. The Demo feature is available any time, whether the market is open or not. This is the principal reason we recommend Ensign as the charting software of choice. Notice the win to loss ratio is 3 to 1.
Next, switch to real time SimBroker Trading on the eMini in Demo Mode. Ensign Software allows you to download and trade any previous day of the eMini S&P AND increase the speed to 2 to 10 times normal. you can then trade the entire day in less than an hour. This technique will help you automate your trade execution. It will be very similar to playing a video game.
Practice live on the daily eMini market using the SimBroker until you get this level of confidence in your method. The SimBroker in Ensign will work on the live market. It will not allow you to cheat, in that it deducts commissions and 1/4 point slippage with every trade.
Then after a few weeks of consistent daily results of 60% winners with a 2 to 1 win ratiom you will be ready to risk your capital, and not before! See what our students say.
Always remember the 5 P’s of trading
Perfect Practice, Prevents Poor Performance
Check our futures trading results here.
Here is a why Money Management is Important
Notice the 21% winning percentage but still profitable.
