The cornerstone to any successful trading system is managing Risk. Simply put Risk is the amount that you are willing to lose on any given trade. It doesn’t matter what promises any one makes to you about how successful their trades are, ultimately you want to be able to sleep at night and know what the worst case scenario is. Too many trading systems promise returns that are unrealistic given the risk you have to take. Take Credit spreads for example. All you hear is “earn 10% per month and there is an 80% probability” of success. Well guess what – if you lose 100% of your money 20% of the time, you’ll never catch up to the 10% that you win 80% of the time. Do the math. Yes, folks will talk about “adjustments” to fix losing trades, but adjustments just lock in a certain amount of loss, and strive to ultimately minimize losses on a trade, not amplify gains. At Stocktradingwithadayjob.com we focus on taking high probability trades which are straight forward to implement and manage – all outside of the normal trading day. Come join us and we’ll have you sleeping better at night!
How much to invest with the program?
So, this is totally up to you. Since the program is more aggressive we would suggest that you allocate a specific amount initally to invest, and then just re-invest the amount of your gains and losses into each new trade alert. Alternatively some might readjust their overall % of available funds on a periodic basis – i.e. twice a year make sure you are maintaining a consistent % of your portfolio. For example if you allocated 10% initially to the program, and your account a year later represents 20% of your total account value, you might want to re-adjust to only allocate 10% to the program. Note: the results shown on our program show every $ reinvested so you can see the potential for incredible returns but they also come with some significant drawdowns along the way. This is something that you will need to manage on your own.