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Thursday, March 6, 2008

Money Management: Drawdown as it equates to your Account Size

Challenge Accounts:

Investing Account Balance: $201.46

Stock / Futures Trading Balance: $684.39
Online Savings Balance: $12.07 ($0.01 Paid in Interest)


I have returned to the topic of Money Management for a while here. Why? Because it's just that important.

In the previous video, I discussed how important it is to consider your account size when considering other money management principles. In the following video, I discuss how drawdown as a variable must be planned out - and how it relates. To what? Your account size.



More money management videos will follow that discuss how other factors and principles of money management, relate to your account size

* * *

Investing Account Balance: $201.46
Stock / Futures Trading Balance: $684.39
Online Savings Balance: $12.07 ($0.01 Paid in Interest)


Total Trades and Investments: 3
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $82.56
Average Loss: $82.56
Accuracy Rate: 33%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.02

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 adviser, 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 who should make their own decisions based off their own research and tolerance for risk.

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