Money Managment Tricks

Quote from Arthur Deco:

Indeed there are tricks. And treats. But as the previous responders so rightly said, first you must have a robust system. The primary trick is using backtesting optimization to match the system risk to your personal comfort zone. The resulting treat is that you trade effortlessly and without anxiety.
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I wasted a year before I figured that out. I had a great system that works, but since it was a swing trading system, I had to watch really big swings in the wrong direction sometimes as it worked it's magic. I had a tendency to chicken out and locked in losses. Now I play smaller cycles and I can be patient enough for it to work. So far, so good.

SM
 
Then you are indeed smart if it took you only a year! It took me nearly ten! It is truly sweet not to worry about multivariate statistics but to cut right through the mathematics with simple backtesting on stop olosses and profit stops. Then you see in the shapes of the variations in the optimizations how the multivariate statistics coalesce into a single comprehensible phenomenon in the stops domain..
 
I think there is one trick that is easy to carry out. when you are losing and not sure if you wanna stop out. CUT HALF of your position. once you've done that. you win either way. it is easier to coupe with a wrongly executed stop mentally(since you still got your the other half), than seeing your account tanking at the full force.

Quote from Smart Money:

I've seen so many people say that the secret to profitable trading is money management.

Ok...we all have our secret formulas for picking winning trades. But are money management techniques a secret?

Can anyone share their ideas on money managment or give some "war stories"?

SM
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