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Determining Optimal Risk Three traders... why did one make so much more?

 

  • Experienced traders know the importance of risk control. Risk little, you win little.

  • Risk too much, you may wipe out your account.

  • The optimum, is somewhere in between.
     

  • The chart on the left shows how important optimizing risk actually is to end profits

 

  • Three traders all do identical trades

  • All start with the same amount

  • All traded at the the same time

  • All traded at the same price

  • All traded the same market

  • One made three times more than the other!

  • Why such a difference?

 

 

Placing a trade with a predetermined stop-loss point can be compared to placing a bet:

 

The more money risked, the larger the bet.

 

Conservative betting produces conservative performance, while bold betting leads to a can lead to a devastating collapse of equity.

 

A bold trader placing large bets feels stress from the volatility of his portfolio. A high stress portfolio keeps more at risk than does a low stress one.

 

 

  • Optimum risk the reason why great traders are great traders!

 

  • Also its one of the so called "secrets of making millions"

 

 

 


Determining Optimal Risk.....more


Studies of risk stress show several factors, which are:

1 Trading systems have an inherent optimal risk.

2 Setting the risk level is far more important than trade timing.

3 Many traders are completely unaware of either of these two factors.

In the article you can download below, you can read how optimal risk trading can net you much higher overall returns than any other method.

 

Presented are a series of examples which proves this is absolutely true.

 

The full formula in excel is also contained within the download, just simply enter your trading statistics into the sheet and you will know exactly how much to risk on each trade to get optimum profitability from your trading.

 

You may be sceptical to believe that such a "magic formula" exists and to indicate my confidence in this product I issue a full money back guarantee if you are not completely satisfied.

 

Still not convinced? View example here

 

Download article and Excel spreadsheet

 


 

 

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