The million dollar question we often get on the phone and via e-mail is “How many contracts should I trade with a X dollars in my account”?  The next big question is “What stops and targets should I use for X instrument?”  

To be completely honest, I have no idea!  I can tell you what Erich does when he day trades the NQ, but what “he” does; with his account size, his trading style, and his risk tolerance are more than likely different than yours.  The key to the answers to these tough questions is sound money management and risk management.  I like talking about the Trade Manager and how it makes money management easy, but you know me, I’d rather show you in a video.

Day trading can be hard; the reality is that more traders – of all kinds – fail because of poor Money Management.  Professionals have known this for years.  Risk Management is drummed into the heads of every Fund Manager, Market Maker, Investment Adviser – as Job Number One.  Money management sounds boring, so most individual traders skip it.  Position Sizing protects you from losses you can’t afford and lets your profits run to their maximum potential.  Risk management is essential to ANY day trading system, and Indicator Warehouse offers a simple solution using NinjaTrader Indicators.

See why money management is the Secret Sauce of Trading in our Trade Room.  Click HERE to Register.