Why You Will Absolutely Fail in Trading If You Don't Master This...

There are many misconceptions about money management. Most think it means trading with stops -- but that is only a small part of it. Below is an excerpt from a dynamic complimentary report, titled "How to Safely Double Your Profits in 2009 Trading ETFs." This little tip alone could save your trading account...

Why use risk controls? Every trader/investor must guard himself against drawdowns -- i.e., the percentage drop in his account size after one losing trade or consecutive losing trades.

For example... Imagine that, after losing a few trades in a row, your $20,000 account is reduced to $12,000: that would be a drawdown of 8,000/20,000 = 40%. If I were to ask some new traders, "In order to be back up to $20,000, what percentage return do you need to generate?" Many would answer, "Since I lost 40%, I have to make back 40%!" This couldn't be more wrong!

Note that, after losing 40%, the trader now starts with a lower base: i.e., to undo the $8,000 loss, the return he needs to generate is 8,000/12,000 = 66.6%!

The more severe the drawdown, the harder it becomes to undo the damage -- as shown in the numbers below:

DRAWDOWN % ... % REQUIRED TO GET BACK TO BREAK-EVEN
10% ... 11.1%
20% ... 25%
30% ... 42.8%
40% ... 66.6%
50% ... 100%
60% ... 150%
70% ... 233.3%
80% ... 400%
90% ... 900%

That is why all professional money managers only risk 1-2% per trade. It's because, no matter how good your trading system is at some point, it is a statistical fact that you will have 10 losers in a row. Based on risking only 1-2% per trade, this is only a 10-20% drawdown and easily recovered.

A full 99% of the hyped-up trading and investing courses in existence don't say or do this. They say risk 5-10% per trade. It is wrong, and will cause you serious financial pain if you follow their advice.

Many of them also use arbitrary stop-loss advice. For example, they say, "Place your stop at $100.10 because that is on the other side of a major support or resistance, trend line, MA, etc."

This makes your risk based on the size of the stop. That is also wrong, because the risk can be too large and it's not the same risk on each trade.

Others reverse this and say, Risk only 2% total, period, and let that determine your stop. This is also wrong, and will hurt you because it is important to have the correct technical stop.

The answer is to do both. Use a percentage and technical stop together.

It works like this: Let's say the technical stop is $100.10. But, based on your entry price, that is a 3% risk. Since your plan calls for a 2% risk, you simply lower the number of shares you are trading. This lets you stay within your 2% risk and have the correct technical stop. This is exactly what most professional money mangers do.

Some say that this will lower their profits, because of trading fewer shares. So what! Study the numbers above again.

You know the old quote, "More risk equals more reward." Well, it's not always true. Sometimes more risk equals more risk! If you lose your money, you have no chance to make a profit. Even losing 50% is disastrous, because you would then need to make 100% to get back to even.

As Warren Buffet says, There are only two rules in investing. Rule #1: Don't lose money. Rule #2: Don't forget rule #1.

I'd like to add a third rule: Correct money management and position sizing must be mastered to ensure your long-term success.

The good news is that it is easy to have correct money management and position sizing. I just explained how to use a combo of a percent [%] stop and a technical stop. If you want more of an explanation, please visit the Free Videos area on this homepage, and click on the "Why have risk controls" article/video title.

The system of entries, stops and profits-taking is only half of your key to success. The other half is money management. If you get this part wrong, you will lose your account every time -- regardless of how good your system is.

Click link below for the free newsletter on how to safely average 6% per month trading Exchange Traded Funds [ETFs]:

==> http://budurl.com/nvp2

P.S.: In order to access the powerful F>R>E>E videos, you must first opt-in for the complimentary report.
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Click Here to Read Your FREE Report, "How to Safely Double Your Profits in 2009 Trading ETFs"

Factory Worker Makes Millions?

There's been a buzz going around recently, about a factory worker who found fame and fortune on the Internet.

I'm usually very skeptical of stories like this, so I checked it out for myself.

Turns out this story is actualy TRUE!

His name is Darren [pictured above], and he used to work in a poultry factory -- 16-18 hours a day...

Then, he discovered a system for quickly making money online.

He was over $50,000 in credit-card debt when he started, but just 90 days later, Darren generated $253,377.33 all from home... while still working 16+ hours a day at the factory.

After looking at what he did to make all that money, I couldn't believe it. It was so brain-dead simple, I wish I'd thought of it!

Anyway, you need to take a second -- right now -- and see what Darren did to change his entire life in less than 90 days.

He says that he has created an easy-to-follow income plan that works for anyone, anytime, anywhere. You can see it here now:

==> http://TinyURL.com/63b2hc

P.S.: Make sure you check out the free gift that Darren has for you on the page. It's pretty awesome, and definitely worth going to the site to see.

==> http://TinyURL.com/63b2hc
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Former factory worker makes over $250,000 in less than 90 days? Find out how!

'Prerequisites to Success Report': Derek Gehl's Free Report Delivers Candid Wake-Up Call to Would-Be Internet Entrepreneurs, Serial Opportunists, Etc.

Last Friday [June 20], we at ProsperNOW gave you a heads-up regarding Derek Gehl's then-upcoming "Prerequisites to Success Report" -- designed to help Internet entrepreneur wannabe's honestly discern whether or not they're truly committed to doing what it takes to prosper online ["What Are Your Qualifications to Start an Internet Business? FREE Report Details Traits Needed to Succeed Online"].

Just as he promised to do, Derek released his report yesterday -- with this note attached:

"The report I created for you is finally ready...

"Over the last two days, I have spent countless hours writing and rewriting the 'Prerequisites to Success Report' for you.

"I've tried to be as concise as possible in my explanation of who YOU need to be as an Internet entrepreneur...

"What sacrifices YOU need to be willing to make if you are sincere in your desire to let me help you make money on the Internet...

"Download the report, shut out any distractions and read every word.

"Then, it's time to reflect and ask some hard questions...

"Do you already have what it takes to be a successful entrepreneur?

"If 'yes,' then great... On Tuesday, I want to start working with you.

"If 'no' ... Are you willing to make some changes?

"If you want the best possible chance at success, you need to answer these questions before Tuesday at 10 a.m. [PST]...

"That's when I'm going to give a limited number of the 'right people' -- people who meet the prerequisites to success -- access to everything I know about starting a business on the Internet.

"I sincerely hope you enjoy and value this free report..."

"Prerequisites to Success: An Inside Look at the Habits, Qualifications and Emotional Intelligence of the World's Most Highly Successful Web Entrepreneurs!"
First off, a warning to folks with a taste for sugar-coated advice: You're not going to get any from Derek!

In his FREE 16-page report, this highly successful Internet entrepreneur delivers a candid wake-up call -- replete with a handy-dandy checklist -- to anyone who's had even one minute of speculation about the possibility of making money online.

Here's an excerpt from his intro:

"Do you really have what it takes to earn a full-time income with a successful, moneymaking Internet business that could comfortably – or even extravagantly – support you and your family?

"Or, are you just kidding yourself and wasting your time and limited spare cash on a pipe dream that you don’t actually have the guts and drive to make happen?

"That’s right…

"With this report, I’m going to do us BOTH a favor.

"I’m going to test your emotional intelligence and stamina to see if you’re ready to stand among the elite few who have truly got what it takes to persevere and start up a lucrative Internet business…

"Or, I’m going to expose you as one of the serial opportunity seekers who follow, yapping at my heels like a pack of hungry hounds, begging for a magic 'get rich quick' pill.

"If you fall into the first category of action-takers with extraordinary potential to succeed, please stay tuned.

"Once we’ve rid ourselves of the noisy, unfocused riff raff, I’m going to offer you the leg-up of a lifetime -- with my full, undivided attention to your start-up.

"If you fall into the second category of serial opportunists, well, please don’t be offended, but I’m going to ask you to kindly step aside and…
• STOP buying my training materials,
• STOP coming to my seminars,
• STOP emailing my staff,
• And STOP wasting your time.

"Because I don’t want your money"...

Uff da! In self-help circles, I believe that's called "tough love." Way to go, Derek!

Want to read Derek's entire 16-page FREE report? Go to:

http://tinyurl.com/5ldwfm
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Think You've Got What It Takes to Be a Successful Internet Entrepreneur? Click Here to Get Your FREE Copy of Derek Gehl's "Prerequisites to Success Report"!

What Are Your Qualifications to Start an Internet Business? FREE Report Details Traits Needed to Succeed Online!

Are you *qualified* to start an Internet business?

If you're like most people, you probably measure your qualifications by your technical skills...

Your ability to design a web site...

Your ability to write sales copy...

Your ability to drive traffic...

But the reality is, NONE of that matters.

Building a business is a FORMULA. If you can understand instructions and follow the formula, you WILL make money online.

So, if it's that simple, why do SO MANY people fail at it?

Personality!

See, there are certain personality traits -- inherent in some, but LEARNED by others -- that allow people to easily succeed, and other traits that cause people to constantly FAIL.

If you could identify those traits, wouldn't you have a better chance at being successful?

Well, here's your opportunity to find out...

... because I've been authorized by none other than Derek Gehl *himself* [pictured] to offer you a FREE copy of his brand-new report, which lays out the exact traits necessary to succeed online.

The report will be available within the next 48 hours, and is based on Derek's personal observations following a DECADE of working with thousands of successful Internet entrepreneurs from around the world.

And, like I said: He's allowing me to offer a copy to all of my best customers, subscribers and readers for free... no strings attached.

When you get it, you can do one of two things:

1. Nothing... which is definitely an "unsuccessful trait."

2. Study it and figure out if you have the inherent prerequisites for success, or if you need to LEARN them.

So, if you would like a copy of this report -- for FREE -- go to:

http://tinyurl.com/5ldwfm

... and follow the instructions there!
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Click Here to Request Your Copy of Derek Gehl's "The Prerequisites to Success Report"!

Free Report Exposes How Super Affiliate Shames 'Gurus' With His Hidden Formula

I can't believe this. Some 26-year-old kid [a high-school dropout, no less] has just released his truly priceless "Affiliate X Factor" report for, well, fre.e:
==> http://tinyurl.com/3ytcqx

This informative and inspiring report shows how be bought two Ferraris, a million-dollar beachfront home, and a super yacht *IN LESS* than 12 months' time...

...using nothing more than the *POWER* of affiliate marketing.

Download your fre.e "Affiliate X Factor" report now:
==> http://tinyurl.com/3ytcqx
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Super affiliate outlaw generates $70,000 affiliate paydays. Download your free report now!

Reminder: Armand Morin's Relaunch Bonus Offer Ends at Midnight Tonight [Jan. 28]!

A few days ago, we introduced you to Armand Morin, the vacuum salesman-turned-Internet multimillionaire ["From Vacuum Salesman to Multimillionaire..."]. We also gave you a heads-up about his super-generous bonus offer that coincides with the relaunch of his top-selling "Internet Marketing Explained" course.

Well, this may sound like a dumb question... But, would you give me $1,997 if I gave you $12,373?

Sounds silly, doesn't it? However, that's exactly what Armand is doing here:

==> http://tinyurl.com/27lvac

The only catch is, it ends tonight -- i.e., Monday, Jan. 28 -- at midnight.

Remember: Armand's 8 BIG BONUSES will all disappear at midnight...

==> http://tinyurl.com/27lvac
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Click link for "An Obvious Truth," Armand Morin's FREE REPORT that'll open your eyes to the true simplicity of Internet marketing...

From Vacuum Salesman to Multimillionaire...

It all started in 1996... A vacuum salesman was at a crossroads in his life. He was living in a studio apartment in Biloxi, Miss., because that was all that he could afford. All he basically had was a desk and a computer. Something had to change.

He started looking for clues from people who had made it big. What were they doing? What was different about their approach to business?

Around that time, he heard Microsoft CEO and co-founder Bill Gates -- by all accounts, the richest person in the world -- make a very important comment: "If your business is not on the Internet, then your business will be out of business."

That's when he made the decision to go for it. He immediately switched gears and went in a completely different direction with his life.

Although he didn't know anything about making websites or writing code, he KNEW the Internet had tremendous potential. It was the future of business.

Fast-forward to today. Now, he's now running his own online business that is generating over $15 million dollars a year.

So, how does one go from being a vacuum salesman who's struggling to get by, to being a multimillionaire who has a dream lifestyle?

==> http://tinyurl.com/245b7m

It starts with a solid foundation of a set of principles and a well-thought-out strategy. From there, all the new traffic and conversion tactics simply slide into place.

And that's where the major difference is...

Most people are trying to force every new tactic or "hot strategy" into their business without ever knowing how it truly "fits." Unfortunately, that's why they experience a "roller-coaster" income.

Some people's strategies work for a while, and then they fizzle out and they're back to square one. However, if you have a solid foundation, you are constantly building on top of the momentum that you have already gained.

That's the secret behind this vacuum salesman-turned-Internet multimillionaire. He built his business differently from the rest and, despite ups and downs in the industry, his income has steadily grown every single year.

What would you rather have -- a roller-coaster income or steady growth? Silly question, isn't it?

The Problem Most People Make Is...
They get lured into the quick-fix, roller-coaster income. Some strategies seem "sexy" when they first come out and, at first, they can be exciting. However, if they don't "fit" and there's no overall strategy, then the same thing is eventually going to happen.

Learn from someone who has done it the right way for the last 12 years:

==> http://tinyurl.com/245b7m

Build a solid foundation the correct way, and watch your sales steadily grow every year. It's less stressful. It's more profitable.

...AND...

It's a lot more enjoyable.

You deserve to take advantage of the opportunity available online. This could be your "decision moment" and, in a few years' time, we could be telling your story of mega success :)

Go forth and prosper!

P.S.: It's worth noting that there are a total of 8 BIG BONUSES that will disappear at midnight on Monday, Jan. 28:

==> http://tinyurl.com/32m77a
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FREE REPORT! Click here to read one of the most powerful, eye-opening special reports ever written about how to instantly succeed on the Internet!

Will You Survive 2007 as an Affiliate Marketer?

I just read a fascinating report about how technology is changing the face of affiliate marketing -- literally, overnight. If you have it, you'll be more profitable than ever. If you don't have it...watch out. You'll be blown into the stone ages.

Read this special report -- aptly titled "Google Cash Strikes Back" -- right now before all of your profits are sucked dry by a new class of techno-thieves. OK, they're not really thieves, and what they are doing is not illegal. Still, they are [not so politely] taking any current or future profits right from under your nose.

In this new report by Chris Carpenter [of Google Cash fame], he shows you an innovative technology that is helping those who use it to be more profitable than ever in the history of affiliate marketing on the Internet.

You don't want to miss out on this one. If you are unaware of these technologies, it will be harder than ever to make a profit as an affiliate marketer. Simply put, this is a must-read.

It's free, so check it out immediately: http://www.gcdetective.com/specialreport/index.htm?affid=13144
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Go beyond Vista. It's time to get a Mac. Skip the hassles and choose the ultimate PC ugrade at the Apple Store. Shop now.

Multimedia Learning Package Helps Boost Your Credit Score to 720 in as Little as Three Months!

Wondering if you're overpaying or being denied a better life because of a low credit score? Wonder no more! In "7 Steps to a 720 Credit Score®: How to Win the Credit Game," you'll learn how to boost your credit score in as little as three months.

Learn the seven, little-known rules of credit -- and turn even poor credit into great credit, and into an opportunity to SAVE hundreds of dollars every single month! Even if you've been denied credit before -- or think your credit is beyond repair -- you can still raise your score to 720, the magic number that qualifies you for the best rates and loans, helping you to save hundreds of dollars every month in interest payments!

For instance, did you know you could save $589 a month on a $300,000 home loan if you have a 720 credit score instead of a lower score? That adds up to $212,040 over 30 years! On the other hand, did you know you could be a high-income earner, paying bills on time, without ever having a collection…and still have a low or average credit score that's costing you hundreds of dollars each month?

It happens all the time. Why? Because we are being judged every day by a set of rules most people never learn. That's why, in "7 Steps to a 720 Credit Score," credit and personal finance expert Philip X. Tirone will teach you the seven steps for playing the credit game so you will establish great credit -- in as little as three months!

For example, you'll learn:
* A dirty little trick that credit-card companies use to lower your credit score to keep their competitors away from you. Learn if you're a victim of this -- including how to fix it.
* Which errors on a credit report are a waste of time to fix and which are a high priority [helping you to raise your score by 5, 10, 15, 20 points at a time].
* How to build credit [if you have none] and rebuild credit if you've gone through a divorce, bankruptcy, or other major delinquency.
* Why you should NOT become a cash-only citizen. At the same time, learn how to keep credit active without putting yourself into debt.
* How paying collections can HURT your credit score.
* How to prepare for a loan by improving your credit score.
* How to maintain a high credit score for the rest of your life!

With a 720 score, lenders will compete for your business -- giving you lower interest rates, insurance premiums, and more -- helping you to save tons of money. Money that you can use toward a new car, vacation home or boat, your children's or grandchildren's college fund, retiring early, or anything else you desire.

Just think: You won't have to change your job or increase your income to gain all of this. All you have to do is change your credit score…in seven simple steps!

Embarrassed by your credit score? Thinking about buying a home or a car? Got collections? Want to save hundreds, even thousands, of dollars every month -- simply by raising your credit score to 720? Order Philip X. Tirone's multimedia "7 Steps to a 720 Credit Score" today!

Who's Philip X. Tirone?
Philip X. Tirone is an expert in residential home financing and a mortgage broker, whose past production proved to be a major powerhouse in his mortgage firm's billions of dollars in loan sales. With a unique background in difficult-to-obtain loans, Philip has spent many years finding loans for borrowers with bad credit, no credit, bankruptcy, and stated income. He has analyzed over 10,000 credit reports and worked with his clients to maximize their credit scores to minimize their interest payments.

An accomplished entrepreneur and philanthropist, Philip is also the creator of the financial tool, Complete Financial Navigator™; is a frequent guest lecturer at the University of California, Los Angeles; and, most recently, was featured in the New York Times bestseller, "Secrets of the Young & Successful," by Jennifer Kushnell.

Click on this link to order Philip's "7 Steps to a 720 Credit Score" now!
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Curious about your credit score? Get FICO Scores/Reports here!