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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Richard Estes who wrote (10398)	6/1/1999 11:20:00 PM
From: Christopher	Read Replies (2) \| Respond to of 12039

Richard, yes "Psychology" is the third one and the most neglected. Elder has been big on trading. Elder does not address the "psychology" problem in his book but he does bring it to the surface. You want to do guys something fun and useful for everyone? Let us come up with a list that help with money management. I will start. Here is the first rule: For every trade you make you should use a stop and you risk should be 2% or less of your total capital. Can someone tell me how the 2% rule was picked? Why not 5% for example? Would 10% be totally wrong? Christopher