Wednesday, November 16, 2011

Risk Management Guidelines - Sean Seshadri

Trading and Investing has large potential rewards but there always exists risk whenever one wants to trade and there always exists the possibility to lose money. In order to mitigate risk one needs to understand how to be a risk manager. Sean Seshadri wants student traders to clearly understand the technical setups that work on a repeated basis, but in order to be successful one needs only allocate 1% or less of their account size to an individual trade. All traders want to do well, but the individuals who maintain long term success must be humble and be extremely disciplined. Without controlling a trader’s emotions, Lux Investments can guarantee that a trader will fail if they ignore risk management. Traders have to take responsibility for their own actions and follow their trading plan before they put on their position. Traders need to be consistent in their methodology and to have a system that is better than 50:50, and when a trade moves against you, Sean Seshadri want either novice or experienced traders to stick to their business plan and they will come out on top.

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