Making money in an increasing market is never a problem. Unfortunately active investing means there is always the risk of loss. And when you have bad luck, several losses in a row. Moneymanagement is, in this, an important part for succes. Moneymanagement is actively managing our working capital. This implies maintaining the ability by using stoplosses for determining of the right size of positions.

As metaphor I would like to make a comparison with a sailboat. Look at you trading account as if it were a sailboat. Too much sail (taking, relative too large, positions) gives the boat a nice speed, but the chance that it turns over in a wind gust is not imaginary. Is there, in proportion, invested too little, than the boat has too little sail then it is resistant to a wind that will never come, while the speed (read; wealth) is unfortunately also minimal.

An investment saying is; ‘the bulls go up the stairs slowly, and the bears jump out of the window!’.

A slowly built profitable position can be gone with one blow.

Investing is making output by taking a calculated risk. If you put money in shares, options or futures, you want them to increase in value. To give this valuegrowth a real chance, you have to determined in advance at which loss you will get out. If you do not do so, there is a big chance that you cut off your profits too soon and that you let your losses rise too high.

From interviews, with toptraders of the World (book: Market Wizards; Jack D. Swager) shows that all the professional traders started with nothing and now they are making millions of dollars a year. The question that Swager asked each year was “how did you become a good trader?”. Naturally there are different answers, because each trader is different from the rest, but one part is almost the same with each trader and that is moneymanagement. Every succesful trader emphasize that moneymanagement is very important to make trading a succes. Even if yourself could determine the right in- and out signals, you will be nowhere if you do not use moneymanagement in the right way.

Perfect Indicator offers you, for a big part, these tools, and with a trade you will know where to find the stoploss. You need to look yourself at the size of your own account, how many positions you take per trade. Ofcourse this is different for each wallet. One trades with a tracker, the other one with a turbo or several turbo’s, the next one with a future, and another one with different futures.

Perfect Indicator defines moneymanagement as managing your working capital. This means: determining the right stops which Perfect Indicator gives with each trade. And also determining the size of the positions, that you can do yourself, base don your capital or already accumulated capital from previous accumulated profits.

We emphasize that good moneymanagement next to signals of Perfect Indicator make the other 50% of the Total succes for you as new professional trader. Moneymanagement should not be underestimated for succes! The importance of moneymanagement is often being underestimated by traders, also because the technical analysis is targeting inparticular for taking the right position. With Perfecct Indicator both are in good hands, you just have to manage your own account.

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