Position Sizing

stop this with good money management

Please also see the discussion on Stops This is one of the areas that almost killed my trading account. In addition to trading without a stop loss, I was trading position sizes that were far too big for my account. This was great if a trade was moving in my direction but if you add in leverage, the losses were magnified as well and I could easily have been wiped out. No one ever told me how to determine how much I should buy – certainly I was never told anything other than this kind of consideration “make sure you



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Bollinger on Bollinger Bands

bollinger bands indicate relative price

Click on cover for Amazon Click link below for The Book Depository Book Depository Link     I became very interested in using Bollinger Bands to help me with entries and exits particularly for mean reversion strategies on foreign exchange. Bollinger details a great methodology for determining if the current price is high or low on a relative basis. Almost every charting package these days includes the Bollinger Band indicators – or at least the simplest ones. John’s book has many more indicators and I have been able to add many of them to Optuma. If you would like these



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Charting Software

optuma

While there are many free charting software packages you can use online, if you are serious about trading the markets you will need good software and a data subscription. I have used two different charting packages. My personal preference is Optuma, previously known as Market Analyst. Optuma has an odd selling model these days unfortunately. On their website, if you scroll down to the bottom, you can find 4 available options all for a monthly fee. The fee ranges between $199 per month (for end-of-day data) to $399 per month if you want connection to a Bloomberg terminal and real-time



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