39. As you are in a minority of traders who have been successful

www.informedtrades.com a lesson on the importance of preservation of capital as part of a negotiating strategy for traders of stocks, futures, FOREX markets. In our last lesson we saw what we can reasonably hope to gain from their long term business, and how the common misconceptions of most retailers, eventually leading to failure to prevent it. In today's lesson we are going in the next step in developing an effective strategy for money management, which resembleManage your losses. One of the most important keys to successful trading is the preservation of capital. Aside from the obvious here, if you lose your trading capital, is out of the game is the fact that it takes much longer to come back from a loss than the loss you try to slow the law is. An example of this I can say to start with $ 10,000 and $ 5,000 from a series of bad trades loose. The loss of $ 5,000 is a loss of 50% on your account, then $ 5,000 nextin it. Now, ask yourself this question. What percentage of income was $ 5,000 in your account to do, just go to break even (the level of $ 10,000) in your account? If you've done the calculations correctly, you see that, for the loss of 50% on your own account, you must make a return of 100% or substantially double success in your return as successful in your application. And 'the concept that one of the most important is to...