EVERYONE! They say there are only 3 rules to trading:
The greatest difference between professional or successful traders and amateurs and failing traders is Risk Management. This is the most critical element to learn to become a successful trader!
Risk Management is probably the most important principle required for successful trading, and the single most influential element in success vs. failure. Professional traders and managers all understand risk management, though some could learn it much better, but new traders usually tend to overlook this. Risk Management is THE KEY to successful trading and investing! Do not miss mastering this subject!
We have two primary works that address the issues of Risk Management, the most important being Ferrera’s Keys to Successful Speculation, which concentrates the first half of the text on this important principle, followed by teaching a mechanical swing trading method based upon Gann’s method, but more advanced which can then be used to generate trading signals so as to apply these principles.
The second course which addresses this issue in a different way is Gordon Robert’s Market Vibrations, wherein he teaches a strategy of Leveraged Position Trading. This strategy uses options to provide save investment opportunities which do not get stopped out and do not get caught in lock limit days or market closures. At the same time however, they provide leverage that is capable of producing exponential returns, allowing small accounts to generate large profits, like Gann was famous for doing.
The third course, Daniele Prandelli's Polarity Factor System is also presents a hard learned system of risk management which Prandelli developed after having blown his capital twice through trading without sufficient risk management. As such, he concentrated his entire attention upon finding a strategy to protect his capital while trading by layering positions to strategically liquidate profits as his position progresses, so as to rarely fall into the situation of allowing a profit to turn into a loss. Many of our traders have found great value in Prandelli's work in teaching them how to do the same, which has lifted their long-term profit balance significantly by reducing the number of unneeded losses.