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.
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LIVE TRADE ROOM DISCLOSURE: All presentations, videos, and information are for educational purposes only and the opinions expressed are those of the presenter only. All trades presented should be considered hypothetical and should not be expected to be replicated in a live trading account.
Commodity Futures Trading Commission Futures and Options trading has substantial potential rewards, but also significant potential risk. You must be aware of the risks and be willing to accept them to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS, IN GENERAL, ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Use of any of this information is entirely at your own risk, for which Indicator Warehouse will not be liable. Neither we nor any third parties provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or suitability of the information and content found or offered in the material for any particular purpose. You acknowledge that such information and materials may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. All information exists for nothing other than entertainment and general educational purposes. We are not registered trading advisors.