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Monday, January 14, 2008

The Sexiest of Money Management Topics: Accuracy Rate

If it's one area of money management that is considered "Sexy" or exciting? It's accuracy rate. Unfortunately - too many folks focus in on the number when it comes to accuracy, and not how that number should relate to other aspects of money management. Below is a video introducing accuracy as a money management principle, and how your money management principles affect your accuracy rate, and vice versa.

Inside the video, I referenced a video by Dave, or "Informed Trades" at YouTube. That video can be found here. It makes extremely insightful statements as to why people get pulled into the hype regarding high accuracy.

But remember. Accuracy Rate only counts for one fifth of money management principles.

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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 advisor, 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

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