Page 27 - ART® Study Manual html5 - flash
P. 27
® “Home-Study Course” Study Manual Page 27
________________________________________________________________________
“Trade Size” Calculator™
Included in your ART® “Home-Study Course” is the “Trade Size
Calculator TM” that you can install directly into your computer. This
software will help you quickly determine the proper “Trade Size” for
each trade based on variables such as your trading account size, your
stop loss distance and the % risk you are willing to take (we recommend
that your net risk be no more than 2% per trade).
Before using the “Trade Size Calculator ™” you should be able to
manually calculate your “Trade Size”. This will improve your
confidence and enforce the concept of sound money management.
The Psychology Behind “Trade Size”
Implementing sound money management encompasses many techniques
and skills. Failure to implement a proven money management
program in your trading will leave you subject to a deadly “Risk-Of-
Ruin” exposure leading to a probable equity bust.
When a trader makes a huge killing in the market on a relatively small
or average trading account, the trader was most likely not implementing
sound money management. In cases such as this, the trader more than
likely exposed themselves to obscene risk because of an abnormally
________________________________________________________________________________________________
Copyright © 2012 TradersCoach.com, Inc. All rights reserved. Any reproduction and/or electronic
transmission of this document is prohibited without the prior written consent of TradersCoach.com
and is a violation of international copyright law. AR-1021-04-06.