Van Tharp Now Calls Money Management Position Sizing

Originally Posted by RAIN

Lets say you started the game risking $1,000. In fact, you do that three times in a row and you lose all three times — a distinct possibility in this game. Now you are down to $7,000 and you think, "I've had three losses in a row, so I'm really due to win now." That's the gambler's fallacy because your chances of winning are still just 60%. Anyway, you decide to bet $3,000 because you are so sure you will win. However, you again lose and now you only have $4,000. Your chances of making money in the game are slim now, because you must make 150% just to break even. Although the chances of four consecutive losses are slim — .0256 — it still is quite likely to occur in a 100 trial game.

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When a man’s ambitions exceed his capabilities, he takes short cuts to fill the gap and often stumbles on his path.

yep its from Van Tharp's article , not my own.

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Trading is simple, but not easy

SOME PEOPLE FEEL THE RAIN, OTHERS JUST GET WET

Originally Posted by ntrader

Protecting capital is of utmost importance.

Very true , and never cared for it for long time, until it dawned its the essence of trading.

Money management is not a easy task. It needs lot of financial knowledge which is updating day-by-day with it's products. Actually in schools and high schools financial education is provided so this is good for the next generation. I think financial adviser can also make a proper guidance for money management.

Hi.
Money Management is not universal in application, meaning the the end result of MM can always be different for different individuals.
Im so very sorry to abruptly stop my experience.
Catch you later.
Happy trading

I am looking for a professional course in money management. Is there any course in which I will get knowledge about finance management, Forex and trading?