Tsunami Trade Money Management

By Author: Lawrence Korbus
Total Articles: 159
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Tsunami trade is a market trading system and set of software that allows the user to easily and reliably trade on all of the major markets. The system claims to be able to help users drastically reduce losses and maximize gains whether they are trading in stocks, bonds, the Forex market, or commodities (futures). By reducing lack of clarity and uncertainty and making sense of the chaos, Tsunami trade says it can bring an order and confidence to a trader's trading experience that they have most likely not experienced before.
One of the ways in which Tsunami trade allows users to gain greater control of their trading is with what it calls its trading money management system. This system uses a mathematical factor it calls the Tsunami trade delta to determine whether to expand or cut back on the number of contracts a trader is entering. In this way they claim that traders gain control over their trading portfolios and do not either over or under invest. As far as money management strategies go this one is simple, straightforward, and fairly conservative.
The following are some reasons to implement money management online ...
... in your trading:

Maximizing Gains

Knowing exactly where you stand financially in terms of the number of increases or decreases in contracts while you trade allows you to maximize your gains. It prevents you from being too conservative. Uncertainty has a tendency to produce just this sense of being unadventurous - too careful. That is, if you are unsure whether you are moving in the right direction or how the next trade's outcome will affect your overall portfolio, you tend to make fewer gains than you would if you had this certainty.
This means that even though, if you're a good trader, you do make money, you do not make as much as you would have had you had a greater sense of clarity, confidence and control. Having the kind of money management tools at your disposal that Tsunami Trade provides can help you attain this confidence and greater certainty, and in so doing maximize your profits to their fullest potential.

Minimizing Losses

Conversely, trading money management allows you to minimize losses. If you are unsure of your status regarding money management, you can just as easily be over confident as under confident. Being too liberal due to a lack of clarity concerning your accounts, you may enter too many trades and see greater losses than you otherwise would. This can lead to a spiral or a vicious circle in which you enter more trades than you ordinarily would in an attempt to gain back the money that you have lost on previous trades, lose still other trades, again increase the portfolio, lose more money, and so on. This can precipitate a real trading collapse if it gets out of hand.
Knowing the delta and using Tsunami Trade's money management software shows you exactly when to reduce the number of trades in an effort to prevent this from happening. This means that you will minimize losses with a disciplined technique that can turn even a bad market in your favor and let you get back to making gains again.

Control is Mastery

Having a certain amount of control means mastery. Control in the good sense means that you will not be over controlled and also not be under controlled. You will achieve a balance of control and freedom of action, and this comes from the understanding and easy applicability that a good money management strategy provides. Tsunami claims that its money management system is the golden mean between profligate and irresponsible investing and dull, unadventurous over conservatism. It's all about finding this kind of balance and using it to your advantage.

Tsunami-Trade: Offers money management strategies along with our money management software. Our money management tools offer significant advantages to the active day trader for money management online http://www.tsunami-trade.com/money_management.html