Day Trading Stocks
Text

Module 7 – Money Management & Account Management

Module 7

Module Structure

Lesson 1 – Account Management & per trade risks

  • INTRO
    • Next we focus on one of the single most important subject of all, money management...
    • ...avoid a catastrophic melt down in your trading account.
    • In an ironic twist it is also one of the subjects that if overlooked. Not this time. Here you are going to learn my unique approach to getting the best of both;
  1. Capital Growth
  2. Capital Preservation.
  • This simple money management technique will help you minimise your risk and preserve capital while balance that with the optimal way to maximise growth.
  • Avoid account churn like the plague.
    • This is when your equity growth looks like a sloppy ranging stock pattern.
  • NEVER reduce your position size
    • Why you should never reduce your position size.
      • Only ever increase position size. 
      • Never again should you have to reduce position size even when you have a drawdown period in your trading.
  • Accelerate out of a drawdown period 2x 3x or 5x time faster than you got into it.
    • Using this method is like driving in reverse during a drawdown phase. There is only one gear and a max speed to protect your capital.
    • During winning phases you will have 5 gears to accelerate your capital growth.
  • What everyone should know about “text book” position sizing and why it's killing your trading results.
 
  • Describe principal Growth & Preservation method
    • When to increase position size
 
  • A practical guide to position size
    • What’s your number?
    • Practical equity management
    • Emotional equity management 
      • position size is like a volume dial on the emotions
      • Reduce position size = minimise the emotions of trading
  • After this AND you have enough capital
    • Apply a percentage of account
    • I prefer 0.5% of risk per trade.
Pen