"Let's start with the basics with Larry Williams

Did you understand? We must have a trend - no trend no profit.
This means that we need to understand what is causing the trend. Graphics, as you will see in a later lesson, help to identify the trend, but the point is indicative of the trend function of time.
The longer you are in the deal, the more potential there is to catch a big trend movements. Just because day traders lose 99% of your time. They do not have time on their side, they have to get out to the end of the day, which means that they have only a few hours in order to develop a trend movements.
So, the only way a day trader can make a big profit ... is to have a large position ... because he or she can capture only small trends or market fluctuations.
If you have a large item can escape with little loss from time to time, but you always catch small profits. Eventually you will be hit with one or two big losses that will destroy your account.
My way to circumvent this is to have a small position and catches of big profits.

That is the basis of profits of billions of dollars that have been made by fund managers, and individuals. Just think about it ... if you have a small position you can only have a small loss. However, you may have more or substantial profit. With the risk / earnings ratio in your favor, you are no longer faced with "Komardzhiiskite factors". You have reversed the tables you play the game correctly. You do not bet much you bet less. As our indicators tell us when it will appear the biggest moves, we will strive to capture significant gains to compensate for small losses that we all have from time to time.

I practice what I preach. Will tell you about a deal with the Japanese yen, which undertook in April 2011. Made a profit of 4,662 per contract ... I long with 16 contracts. My Stop Loss showed that he could have lost about $ 1.200 from the transaction. My potential profit was four times greater than my potential loss ... and even better ... I was able to raise my stop up as the market began to move to the point where he could not lose nothing ... and still had potential. That's how it's done.

Why had 16 contracts, rather than one or five or 55? This is explained in my course Cracking The Money Code section on money management. As you may have read in real trading competition, I took $ 10,000 and made them $ 1.1 million in less than a year trade. This happened largely due to the strategy of money management that teach.
The basis of all success in your trade will come from this rule. Do you have the proper risk / profit? Is it possible to bet a little to make a big profit? If you do this, you turn the tables in your favor. Then with the right commercial skills and my good indicators, which will begin to teach the next lesson, you are on your way to success.

Larry Williams