Money Management: Reward Analysis

The Blog Entry that Accompanies this Vlog is at: http://investorandtrader.blogspot.com/2008/11/money-management-reward-analysi...

My Daily Blog is at: http://investorandtrader.blogspot.com/

My channel at BlogTV is: http://www.blogtv.com/People/Airelon

Whether you are a forex, stock market, commodity futures trader with day trading, swing trading, or position trader Money management is key. And we all want a reward. As I've stated at my daily blog at http://investorandtrader.blogspot.com/ very often, you have to balance your risk analysis against your reward. How? How should your risk relate to your reward?

NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research and risk tolerance. Included Music is by Paul Young. A personal friend and is not a part of any music license, recording label, etc

Category:

Education

Tags:

• howto
• trading
• investing
• Airelon
• stockmarket
• forex
• commodityfutures
• options
• moneymanagement
• riskrewardratio
• daytrading
• swingtrade
• positiontrade
• profitaking
• profits
• dividend
• DRIP

[sultanchamp]

Hey, great video. I just have a question. If you're in a trade and you've hit your reward goal, do you jump out or would you adjust your stop loss to where your initial reward goal was and let it ride? Thanks in advance.

[AirelonTrading]

@sultanchamp Great question ... much of that depends on the tape. I may shred off some of the position profitably, and keep some of it on, while at the same time ... tightening the stop loss.  In this way, I have a) taken profit when I hit my goal and b) kept a minority of the position on so that if it moves higher, I can continue to make even more money and c) adhered to money management principles

[MarkMillionaireGuru]

Hi AirelonTrading

I have just been watching your video and I must admit it really is very good.

I really enjoyed watching it.

Already looking forward to more of the same in the future.

Cheers to your success.

Mark McCulloch

[AirelonTrading]

Thanks much, and I'm glad you've been enjoying the videos.

Don't forget the daily blog, as the videos here at YouTube are only about 1/3 of what I put out there. The blog contains about 2/3's of the rest of the free information available.

:)

Dan

[CorkyAgain]

One thing that I would have liked to see in this video is more detail on setting a price target in order to calculate the risk:reward ratio. That's one area where I still have a tendency to be too subjective in my approach.

I just discovered these videos after doing a search for info on money management. They're some of the most helpful things out there. Thanks!

[AirelonTrading]

One video where you might find some more helpful information - is the video I have on Trade Management ...

There's a video reply to this video where I talk about the need to look to volatility.

[Luiyi385]

Brilliant !

[nolo430]

2% rule...I was wondering why you should start with 25k..lol...great principal!

[Forsure3333]

Fantastic. I had to rewatch the Management videos a second time to understand better. Before investing anything at all, I prefer to fully understand what you're talking about. Otherwise, I may lose a lot of money and think that after all, investing is not for me. As you said, you have to know what you're doing.

[Forsure3333]

Hi Dan. I have not invested anything, but was excited and anxious at the same time about it. I've seen only a few of your videos so far, and I already feel more comfortable and confident about investments. Thanks for producing those videos!