Money Management | Trade Futures
The ability to “manage risk” is an important factor distinguishing winners from losers. Losers are unable to limit losses effectively since they tend to ride losing positions into the ground. Most traders are fixated on being right! Being right, is a function of your technical skills, fundamental perception, and the conclusions you draw before you enter the market.
Managing risk is the most important and most overlooked component in the trade determination process. Regardless of your emotional feeling about any particular position it all boils down to maximum risk in case you are 100% wrong. That’s all. Managing risk is the “hat” you wear to protect your asset.
Consider Synthetic Futures. Synthetic simply means manufactured, or man-made. It is a future in the primary direction of the market, and an option for protection, or risk management, instead of a stop. Think of it as a “stop” with time attached. Synthetics also give you both sides of the market, a predetermined risk, and no need for a stop until you are ready. Put yourself in charge of your money, not the whims of the market or prearranged news announcements.