Thank you for visiting CraftyStox. 

This page is very important for your trading success.

One of the most important concepts that you should understand in order to be successful in trading is that of money management. Most people think of money management as having a tight stop loss. Some also think that averaging a position is money management. Professional traders have a completely different notion regarding money management. They know that limiting the risk that you take is more important than limiting the loss. There is a subtle difference between the two, but that difference is so important that you better understand it very well.

First of all, know that any amount of skilled analysis is only a tool in your strategy. It doesn't guarantee that the markets will do your bidding. Suppose you trust CraftyStox because of the many good calls I've made in the past. Does it mean you can bet the house on the next trade idea I suggest? You will be smart if you realize that what you get here is an orderly approach to trading. It is perfectly possible for three, five or even seven trades to go wrong in a row. Can you withstand the loss that this will mean to you?

Do you know that if you lose 25% of your capital, you will have to make 33% on the remaining capital to just BREAK EVEN? And if you lose 40%, then you have to make almost 67% to break even? So how do you manage your risk? You do that by choosing to trade a position size that, even if the trade results in a loss, will not make you stop trading. The position size should be such that even if you lose 5 trades in a row, it will still mean you have not lost 20% of your capital. Only by understanding this can you survive in the markets. Of  course, you will never become a millionaire in one year, but at least you will make lots of money.

Perhaps you now realize why CraftyStox stands out from the crowd. Over here, you learn key concepts that make you a better trader. Now that you have arrived at this important page, you need to decide your immediate first step towards successfully trading stocks, whether it be QQQQ or any other stock. I suggest that you spend a few minutes browsing some of the pages linked to the ads below. Obviously, these advertisers are offering something for a fee, otherwise they won't be paying Google to display their ads. But that doesn't matter to you. If you can get some inspiration from their presentation, then it is time well spent. Look especially for pages that offer suggestions on "how" to trade. The "how" should focus on relating risk to reward and position sizing. After you have visited these pages, come back to CraftyStox and look at some of the many examples posted throughout this site. They are all free. Welcome aboard! and happy trading!