In this video, I discuss the possibility of hiring somebody else to trade for you. There are plenty of places to find money managers on the Internet, and as a result you will sooner or later asked this question of yourself: “Can I make money, or should I hire someone else?” There is a case to be made for doing either. Quite frankly, there are a lot of people out there looking to trade your money. It’s not hard to find someone willing to do it. However, it’s not necessarily easy to find one who’s good at doing it. You need to find a verifiable record, and you should be very leery of people who claim any extraordinarily large gains. They typically will blowup sooner or later, due to using far too much in the way of leverage. You will run into people who claim to make as much as 50% week, which is a really bad scenario. If you are looking to trade on your own, that comes down to whether or not you have time to learn how to trade the markets, or even if you have enough time, can you make the money necessary to make it worth your time? If you don’t have enough time to learn, trade, or don’t have the profitability, then you obviously will need to look for someone to major funds. However, keep in mind that there is a percentage that they take out of the gains, so having said that it is more expensive down somebody else do it.

In this video, I talk about risk versus reward. Without a doubt, this is one of the most basic money management fundamentals that you have to follow. The one thing that you have to understand about trading is that you are not going to win all of your trades. The reality is that you are going to have losses from time to time. By using risk to reward analysis, you can help increase the odds in your favor longer-term. For example, if you’re risking 1 in order to make 5, you only need to be in order to break even. However, if you are risking 1 to make 1, you will likely lose money over the longer term as the losses will wipe out gains much quicker. Looking at a few trades, you can see that the first one is a massive hammer that formed at the bottom of the downtrend. This is typically a reversal signal, but if you use classic technical analysis and trading technique, you can see that on the hammer you would have to risk something akin to 550 pips. Now looking at the trade itself, you have to ask yourself how far can this particular pair go? In this case, you can make a real argument for the 155 level, but the problem is that you’re working against the trend. Because of this, you have to take that into account, and you can also find quite a bit noise on this chart at the 153 level, meaning that you are more than likely going to get 250 pips. This is an absolutely horrible risk to reward ratio and therefore this isn’t the type of trade that you want to take as you would almost always have to be correct on these setups.