Good Investing Lessons

Here are the steps to build your own system: Designing a High Reward-Risk System for Managing Money Expectancy = (Probability of Winning * Average Win) Minus (Probability of Losing * Average Loss) Ensure Reward to Risk Ratio is above 2. That means Average Loss should be small and Average Wins should be big. Set stops that will be reasonably small. Do not enter trade is the stops has to be too large for comfort. Use systems to spot opportunities that will provide better probability of winning. NOTE: It is extremely dangerous if you are not adequately capitalized. Many traders failed due to excessive draw downs. By simple probability, the bigger player always wins against the smaller player. Technique I -Get Best Reward-to-Risk Ratio and then Leverage Yourself Have a system that can spot good opportunities. Not quite duplicable. It involve good return with small draw downs. 5-1 is not quite achievable. 2-1 is generally possible and good enough. Above that would be great. Technique 2 -Op...