60 to 1 Reward Risk Ratio

...cont'd discussion about How to Take Money from Wall Street: Learn to Profit in Bull and Bear Markets

By superior money management, Tony means the following:

Limit the amount of money you put on any single trade to a fraction of your account balance, such as 12.5% or 25%. That’s to guard against loss due to a catastrophic gap down where the price of a stock is cut in half, a common occurrence following bad news.

Limit the amount of money you put on any single trade such that if your stop loss is hit, you lose only 1% of the value of your account balance.

The foregoing advice is information normally given out only at seminars costing about $3,000. Tony gives that information out in a book with a sticker price of less than $50! That's a 60 to 1 Reward to Risk ratio.

...continued tomorrow...

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