We need to tighten up our act. Too much left to chance is recipe for a dangerous result. Tightening up means we make rules as to "HOW we will play this game" and we stick to them.

Money Management - Your Ticket to Profits -------------------------------------------

If your account is $10 000 then you will have a very good idea as to how much you will place on any (one) trade. A rule I've adopted for a small account is an allowance of 10% on any one trade. You will trade in parcels of $1000 and you will only suffer a maximum loss of 10% of that trade.

Thus you will trade with a $1000 and you will cap your loss at $100. You will quit trade if you lose $100. Now you need to be comfortable with your rules so I offer mine as your guide - you decide what your rule will be.

In other issues I have mentioned sort of return you need if you make a 10% loss or a 50% loss.

Look at returns needed just to get your money back:

10% loss.....................11% profit required

50% loss.....................100% profit required

A wonderful resource by David Jenyns will help you fine tune your trading tactics and help you adjust size of your trading positions.

Follow link: http://tinyurl.com/4xml6

I also suggest you start buying and selling shares(stocks) to get some experience in trading without volatility of other instruments like - options, warrants and futures.

Work on profitable stock trading and then learn how to trade other things. This gives you confidence and also gives you time to learn and experiment without too much damage.

To prevent serious loss don't trade unless someone is able and willing to provide you with a "stop loss". It is hard to get ideal broker but you do want to increase your chances of success and "stop losses" are VERY IMPORTANT part of your system.

Ring brokers and ask them whether they provide service. Discount brokers are preferable if you have a small account otherwise cost will eat your profit. You don't want circumstance to push you into placing MORE than your 10% into trade. So do numbers and don't worry about broker advice - your system is your advisor..got it?

I've mentioned it before and I'll give you link here. Mark McRae has created, "Trading For Beginners". He gives a very good explanation of trading basics. I love my copy! He is on ball with his introduction into technical analysis.

Understand, if we were rational and unemotional stock market probably wouldn't exist. Instead we are blessed with a means to earn a superior living, without 9-5 routine!

Now you make sure you get your copy and read it..okay! Just before I give you link make sure that when you get your copy you don't skip - "stop losses" on page 70.

Here it is:

http://tinyurl.com/2k29q

This resource is essential for starters. I wouldn't stop with this one but I mention it because it's easy to read and understand. The next one to read is this one:

"The way to Trade"

http://tinyurl.com/2fgrv

Save Big By Being Patient By Jeffrey Strain

When people claim they have saved money or found a great deal, you usually hear about time, effort and research they put into getting bargain. This gives impression that getting good deals takes a lot of work. While good research and organization can go a long way to getting you great deals, truth is that doing nothing is often your best resource when getting a great deal. The personal quality of patience is rarely mentioned when reading about how to get best deal, but if you are a person who can simply wait, you'll save yourself thousands of dollars a year.

In this instant gratification society, having patience to wait even a short amount of time can cut expenses dramatically. While Jones' are trading in for a new luxury car every 2 years and purchasing latest and greatest gadgets as soon as they hit retail stores, if you have patience to wait, you can often get same items at a fraction of cost.