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Risk Control and Money Management - Bennett
McDowell Discusses the 'Truths' About the Markets and the Importance
of Risk Control and Money Management.
In an interview with InvestmentConnection.com, Bennett
McDowell discusses the importance of risk control and money
management while trading in today’s markets. Bennett also discusses
the 'truths' about the financial markets - price and volume.
(PRWEB) July 22, 2005 -- In an interview with
InvestmentConnection.com, Bennett McDowell discusses the importance
of risk control and money management while trading in today's
markets. Bennett also discusses the 'truths' about the financial
markets - price and volume.
Bennett McDowell is the President
and CEO of TradersCoach.com. TradersCoach.com has been a
professional trading organization, trading system developer, and has
helped traders improve their trading skills. TradersCoach.com is
unique in that it was developed by a trader for a trader. Bennett
has also created his own trading system which trades "the Realities
of the Market" while maintaining risk control.
Here is a
sampling of the interview (the rest of which is available at http://www.investmentconnection.com/int/stock-trading-system_6.html):
IC
Question: You know we talk about price and volume quite extensively.
Why do the consider these to be the "Truths" of the financial
market?
McDowell: Well, both price and volume really cannot
be distorted. It's a fact; it's a truth of the market provided that
price and volume have not been manipulated. They are absolute facts
of the market. Compare that now, Walter, to like an indicator
developed by man that actually distorts. All indicators are really a
derivative of price and volume and therefore, actually distort the
realities of price and volume to some degree and that's why most of
them are lagging indicators.
IC: Why is risk control and
money management so important when trading the financial markets?
Bennett McDowell: Well for starters, it keeps you from going
broke! Seriously, all trading systems, no matter they are mechanical
or even based on some fundamental information will have a periods of
draw-down, which is nothing more that a series of consecutive
losses. Risk control in conjunction with money management allows you
to incur trading losses without the risk of ruin. So, therefore
money management and risk control are key elements of success
regardless of which trading system you use. So they are very, very
important.
For the full audio interview with Bennett
McDowell visit:
http://www.investmentconnection.com/int/stock-trading-system_6.html
InvestmentConnection.com
based in Los Angeles, CA conducts audio and video interviews to help
give investors the tools they need to succeed in a variety of
markets.
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Source : http://www.prweb.com/releases/2005/7/prweb264022.htm |