Total Immersion: How I Learned to Swim Effortlessly in 10 Days and You Can Too 434 Comments.

In the game, as with real trades, there’s only one position sizing question to answer when entering a trade: ‘How much do I risk on each position?’ You establish the risk amount through your initial stop price (what’s your risk per share?) and your decision about how many shares to buy (which determines your total risk). In the first few levels of the game, you will get the result immediately.

Later in the game, you’ll have to manage your risk from time period to time period in order to grow your profits (as you would in real trading).. I've designed The Position Sizing™ Game to help you learn the secrets to trading success before you play the markets. This game does not simulate picking stocks in the market. Instead, it simulates trading a system that has certain characteristics. The system takes care of the ‘stock picking’ for you so that you can focus entirely on the most important aspects of trading-position sizing and letting your profits run. Our game has ten levels that get progressively more difficult to master. However, once you've mastered these principles, you'll know you've mastered some of the skills to trading success.

(Levels 1-3 are free). To complete this game, you must master four key principles: (1) understanding the importance of R-multiples; (2) understanding the difference between expectancy(预期) and probability(概率); (3) learning how to let profits run without letting them escape; and (4) using position sizing to make sure you have a low-risk trade. The Position Sizing™ Game is designed to drive these principles home by giving you the experience of making (or losing) money in a game environment where losing is safer. Through this game, you’ll begin to understand these principles experientially without having real money at stake. My book, The Definitive Guide to Position Sizing [], explains all of these ideas conceptually if you’d also like that.

In Level 1, 60% of the trades (on the average) will be winners. Most of them (55% of all trades on the average) will be 1R gains. Thus, on 55% of the trades, you'll earn whatever you risk. If you risk $1,000, you’ll earn $1,000 on a 1R gain. In Level 1, 5% of all trades will be 10R gains. In other words, if you risk $1,000 when one of these trades comes along, you'll make ten times what you risked or $10,000. However, 35% of the trades in Level 1 will be -1R losers and 5% of the trades will be -5R losers.

You'll get a chance to feel the impact of having a -5R trade in this level. Expectancy is a mathematical formula that tells you how much you will win on the average per dollar risked. It takes into account both the probability of winning (or losing) and the size of the R-multiples. Casino gambling games are all negative expectancy games; you cannot make money in the long run unless you can do something to change the odds.

In trading, you must play a different game from gambling. You must have a positive expectancy game on your side in order to make money in the long run.

Expectancy is actually the average R-multiple that your system will give you per trade. When a trade fails, you lose one dollar per share. When a trade works, you make 15R or $15 per share! What if you were only right 30% of the time and you make money in three of ten trades? In ten trades you'd make $15 per share an average of three times. Your total gain would be $45 per share. In the same ten trades, you'd lose $1 per share on the average seven times.

Your total loss would be $7 per share. Over the ten trades you'd end up making $38 per share (or 38R), even though you were only right 30% of the time. Large R-multiples in your favor are much more significant than ‘being right’ for making money in the market.

Remember that! And if you had risked 1% of your total equity on this system, you would have been up about 38% at the end of 10 trades. Another (more difficult) way to determine expectancy is to multiply each R-multiple (both negative and positive) by its probability of occurrence. Then sum the results (i.e., subtracting the values of the negative R-multiples) to get the total expectancy. All of the probabilities, of course, must add up to 100%. If not, it means that you have missed some.

In the case of our stock example just above, you multiply 0.3 by 15 (which is 4.5) and 0.7 by minus 1 (which is minus 0.7). When you add 4.5 and minus 0.7, you have a total expectancy of 3.8R.

This means that you will average in gains, over many trades, 3.8 times your risk on each trade. If the calculation of expectancy seems complicated, we have good news. The game calculates the expectancy for you-both of the system and the mean R-multiple of your trades. You can find the expectancy of each level in the statistics window and your running expectancy within the level is displayed on the trade window.

You'll also know the probability of each trade. Since the game randomly generates the trade results from the system’s R-multiple distribution, you could easily get 10 losers in a row, which goes against the expectancy. However, at the end of the level, you'll probably be pretty close to the expectancy of that level. It's just like real trading in that you won't know whether the next trade will be a winner or not. The game will also give you the expectancy of the trades to date as they are randomly picked. This way, you will know how far off the trades are from the likely expectancy that was built into the game.

There is a critical aspect to expectancy that you must understand. Expectancy and probability are not necessarily the same. As I said earlier, you must have expectancy on your side, but you don't need to have probability on your side. Let's look at the example given earlier. You win 30% of the time, and when you win it's a 5R gain. You lose 70% of the time, and when you lose it's a 1R loss.

You only make money 30% of the time. Thus, the odds are against you. However, the game has a positive expectancy, giving you an average of 3.8 times your risk each trade or 3.8R. In the last four levels, you'll have to earn your big R-multiples by letting your profits run-just like in real trading. Losing trades will happen quickly, but winning trades will take time to develop. When a winning trade starts, it will probably just be a 1R win.

You now have to wait another trade to determine if it will continue and how much of your gain you want to risk. When a winning trade starts, the chances of it continuing are good.

However, you'll need to decide if you want to risk it all or just a portion of your profits. At each level, you will have to study thoroughly the Level Statistics under the View Menu to come up with a position sizing strategy for that level and decide how much you want to risk on each trade. One of the main lessons you must master in order to profit will be the art of position sizing. You can think about various strategies, such as playing the market’s money or any of the other strategies presented in Trade Your Way to Financial Freedom [] or in The Definitive Guide to Position Sizing [] and try them out without risking real money.

Now, you can also experience the effects mistakes can have on your trading. No trader is 100% efficient-no one trades error free. When you have a good feel for position sizing, try lowering your efficiency to 95%.

That’s only one mistake out of 20 trades. When you make a mistake on a losing trade (i.e., minus 1R) then it becomes a larger losing trade (i.e., minus 2R). But if it is a winning trade, then it suddenly becomes a losing trade (i.e., +10R might become minus 1R). I believe there are few traders who are 95% efficient in their trades.

Try trading at 90% efficiency in the game. If you want a real challenge, try to get through level 1 at only 85% efficiency. It’s very difficult. Most people go bankrupt because they do not understand the most important aspects of trading or their greed gets in the way. Here are some of the most common mistakes: 1) risking too much; 2) risking more after a losing streak; 3) failure to develop a strategy for position sizing; 4) failure to stick with your position sizing strategy; 5) risking too little and not making any money; 6) not letting profits run enough during a winning trade, especially at the beginning of the trade; and 7) risking all of your profits continually during a winning trade. Position sizing is the key to making money in the markets and that's what you need to learn in the first few levels.

Most people think that the key to success is analyzing the markets and finding the next winner. And that's why a lot of people have trouble making money in the markets. Instead, the most important question you need to ask is, ‘How much money should I risk on this particular trade?’ This game is designed to teach you success secrets and steer you away from the biases that most people have. You'll learn a lot more by experimenting on your own than if I just gave you a strategy to use. After all, you won't lose any real money playing the game and learning in the process.

Here’s a general hint: risk a small percentage of your equity-enough to do well, but not so much that you'll be bankrupt if a 5 to 1 loser comes up right away. You might consider increasing the percentage when you are ahead and decreasing it when you are behind. The key is to experiment liberally so that you discover the importance of position sizing and the multitude of ways to implement it in your trading.

In addition, make sure you risk a large percentage (if not 100%) of your profits, when you begin winning trades. Imagine that you are trying to catch the start of a winning trade; however, you have a tight stop. You might end up getting stopped out three or four times in a row. But you keep the stops tight because you know you'll catch the winning trade one day. That's the same thing as playing this system. Pretend that every one of these trades looks like a winning trade is set to start on the chart. You are ready if it takes off on you as soon as you enter.

If not, you get out at a small loss and try again. The systems in Levels 1 - 6 result in profit or loss on a trade with a single price movement and then the system makes the next stock selection. The systems in Levels 7-10 allow a profitable trade to continue through multiple time periods-you can have a winning trade. In a winning trade, your job is to manage your profits and your risk as the stock price moves during multiple time periods. The number of shares that you entered with is fixed through the length of the winning trade; you cannot increase or decrease the number of shares. You manage your risk in a winning trade by adjusting the dollar amount per share at risk as the trade progresses.

Think of adjusting the risk per share during a winning trade like adjusting a trailing stop as the price moves higher. Each time period progression of the winning trade will have a positive or negative result that will affect the accumulated profits. The winning trade will progress until it hits a -1R result or when the accumulated profits for the trade have gone to $0 or below. You will not know when the winning trade will end.

When the winning trade ends, the system will select a new stock for the next trade. You start the game with $10,000 in equity.

If the first stock selected is a $10 stock and you decide to risk $1 of that price, you have a risk per share of $1 (a stop price of $9). If you then decide to buy 100 shares of that stock, you will consume 10% of your equity for that position and risk a total of $100 (100 × $1) or 1% of your equity. Trading results in the game are expressed in terms of R-Multiples or Risk Multiple.

It is the size of the initial stop times the amount of shares purchased. Your R-Multiple is the figure that you multiply your risked amount by in order to determine your gain or loss on that trade. The system in Levels 1 and 2 provides you a 55% chance of earning +1R.

That is to say that that in 55% of the trades, you will earn 1 × R or 1 times your total risk. A 1R trade on the $100 risked as mentioned above will earn you a $100 profit on that trade.

The system in level one also provides a 35% probability of -1R or losing 1 × your risked amount, a 5% of +10R and a 5% chance of a -5R trade result. A -5R trade will result in a $500 loss if you risked $100 on the trade. The historical expectancy for the trading system in Level 1 is 0.45. This means that on average over time, a dollar of risk will earn $0.45 in return. You would see a figure close to this average over many thousands of trades. Over 75 trades, however, the trades will generate an actual expectancy above, below, and around that average, but rarely ever right at it. This is due to statistical concept of variability.

Think of a pair of dice-on a given roll, you will get anywhere between 2 and 12. After many rolls, the average result will reach 7. In this game, your trades are like the dice, you will see many results away from the long term average and over time the results will move toward the average. You can monitor your actual ongoing expectancy right on the trading screen with every trade.

This is a position sizing game, not a trading game. Each level has a system that screens the market for you and picks the stocks to trade. The system’s criteria for stock selection are irrelevant to the game.

Each system has been engineered to produce a positive expectancy (i.e., you can expect to make more money than you lose over time if you buy the stocks that the system has selected). Your role in the game is to come up with a position sizing strategy that tells you how much to risk on each trade so that you make a 50% return in 75 trades without blowing up your account. If you think that price charts will help you, they’ll be displayed in the even numbered levels. Normally, your system would tell you where to set the stop price but in this game, you decide where you’d like to set it with the amount risked per share. How much are you comfortable risking on a per share basis? At what price would you think a trade is not going to work out? This is subjective and based on your personal preference but start somewhere.

You can play again and change it in the next game. After determining the risk per share, next decide how many shares you want to buy for the total risk on the trade. To help you think about that, I’ve provided the trade probabilities and results for the system in the ‘Level Statistics’ section under the ‘View’ menu.

What’s the worst case trade result? How many losing trades might you get in a row?

What’s the expectancy for the system in this level? Think about these things to help you determine how much you should risk on each trade. If the expectancy is 0.45, what percentage would you risk to get the maximum rates of returns? (Hint: what's the worst loss against you?) Are you willing to risk more just in case the worst-case loss does not come up before a 10 to 1 trade hits? In 75 trades, how many of those are you likely to see?

These are some of the issues you need to consider. Here’s another hint: You might want to simply risk 1-2%. You can do that by setting your stop at some arbitrary level such as $5. Then select the number of shares that will now risk about 1-2% of your account. For subsequent trades, you could keep your risk per share at $5 and just adjust the number of shares to keep your risk percentage constant. You will be able to do this continually unless a stock comes up that sells for less than $5/share. You need to work out these issues for yourself.

They are issues that every investor/trader faces, but most people ignore them. What would happen if you risked 100% of your equity on a trade? What would happen if you risked 45%? Elektor 1001 Schaltungen Pdf To Excel there. What would happen if you risked 20% or 10% or 5% on a trade?

Remember these are just round figures I’m picking out. You could get two -5R trades in a row or you could make 40 trades without ever hitting a single -5R. Come up with a strategy that deals with these possibilities, use it in the game, and see what happens. Figuring out a good strategy and learning from your mistakes is one of the skill requirements of this game. Here are some things to think about though. What is your worst-case loss?

It's a four percent probability of -3R, so at what amount of risk would you risk bankruptcy on a trade if that one hits? With a 70% probability for each trade to cause a loss, how many losses could you have in a row? You could easily have 9 losses in a row in 75 trades. You might even have a streak of losses as long as 20 trades or more. You need to play to survive so you can make money on the +30R trades that might come up. With those two guidelines, design your own strategy.

You’ve come a long way to make it through six levels. Starting at this level and running through the end of the game, the trading system allows the trader to let their profits run on stocks moving up in price-a winning trade. Once you have a stock that runs, you have much more favorable odds of profiting during the winning trade than you did with the initial trade. Look at the statistics in the ‘Level Statistics’ section of the game to see the probability during the winning trades. As with the previous levels, you are presented a stock that the system picked for each trade. Your job is to determine whether to go a long or short and then determine how much you will risk on each share and how many shares you will buy or sell.

If you go short, then your probability of winning will be high; however, your expectancy doing this will be negative because (1) when you lose, you will lose big and (2) if you lose, you get locked out of any winning trade. We strongly suggest that you go long rather than short. This is very much like your experience in Levels 5 and 6.

When you are long and a trade has a positive result, it then enters a winning trade. Now the probability of continued winning is very much in your favor.

In a winning trade, you need to manage your risk. In the markets, traders can manage their position size by adjusting how many shares they own and by adjusting the stops. In the game, you keep the number of shares you started the winning trade with through the entire trade. You manage your risk by adjusting the risk per share as you maintain the position while the stock price moves. Think of the risk per share during a winning trade like a trailing stop amount. You can risk all of your gains if you like and not trail the stock price at all by clicking on ‘Let it Run.’ You can easily double your profits on most time period progressions when you ‘Let it Run’, but you also increase the risk of a big hit to your accumulated profit for the trade and to your equity each time you do that. To preserve some of your profits, it would be prudent to risk less than your total accumulated trade profits by reducing the risk per share amount.

This is like tightening up a trailing stop as the prices rises. In the markets letting your profits run is not as easy as just watching them double each day. Winning trades end and trending stocks tend to have big corrections. Thus, you’ll need to protect your profit in some way during the trend. If you hit a -2R or -3R time period and your loss is less than your accumulated trade profits, the winning trade continues.

Whenever you hit a -1R time period-regardless of how much or little you are risking-the winning trade is over. Again, the winning trade ends when you either hit a -1R loss or you lose all of your accumulated trade profits and original risk amount due to a -2R/-3R loss. Be aware, if you are risking a lot of or all of your accumulated winning trade profits, your trade may end with a large loss, which can cause you to lose not only all your accumulated winning trade profits, but much more if you simply decide to double up at each time period progression. As with previous levels, you are presented with a stock for each trade.

Your job will be to determine whether to go long or short and then determine how much you will risk. If you go short, then your probability of winning will be high, but your expectancy will be negative because (1) when you lose, you'll lose big and (2) if you lose, you'll get locked out of winning trades. We strongly suggest that you go long. This is very much like your experience in Levels 5 and 6. Going long in Level 7 provides you the new opportunity to participate in a winning trade.

Your long trades will result in a lot of losses but the winning trades allow you to more than make up for those many losses. In some cases, winners are reckless and lucky. Traders who want to be reckless and earn a high score can let their profits ride on every time period progression.

They have a chance at astronomical returns but an even a bigger chance of blowing up their account. Are you willing to go bankrupt trying to reach the moon? Let me ask the same basic question in a different way. Which do you think requires more skill-winning a short term trading contest or making consistent trading profits over a long period of time? This game involves long-term survival through 10 levels of play. People who complete all 10 levels will be survivors who have practiced sound position sizing through the entire game. They have learned how to let their profits run while also protecting them.

That's what I'm trying to teach. First, you can’t effectively use either the Total Equity Method or the Reduced Total Equity Method in this game because the systems here can have only one position open at time. The game structure basically forces you to use the Core Equity Method for determining your equity.

You didn’t have to wait until this level to think about incorporating a market’s money strategy into your position sizing strategy. Any profit that you’ve earned over your initial equity for the level could be considered market’s money regardless of whether that’s from individual trades or from a winning trade. The next time you play the game, use a market’s money strategy from the beginning and see what kind of effect that has on your results. Just like Levels 7 and 8, when you are not in a winning trade, the system will present you with a new stock for each trade. Your job will be to determine whether to go long or short and then determine how much you will risk.

In Levels 9 and 10, you'll also need to get a feeling for the probabilities because none are provided to you. If you go short, then your probability of winning will be high. However, your expectancy will be negative because 1) when you lose, you'll lose big and 2) if you lose, you'll get locked out of winning trades. We strongly suggest that you go long.

In the game, as with real trades, there’s only one position sizing question to answer when entering a trade: ‘How much do I risk on each position?’ You establish the risk amount through your initial stop price (what’s your risk per share?) and your decision about how many shares to buy (which determines your total risk). In the first few levels of the game, you will get the result immediately. Later in the game, you’ll have to manage your risk from time period to time period in order to grow your profits (as you would in real trading)..

I've designed The Position Sizing™ Game to help you learn the secrets to trading success before you play the markets. This game does not simulate picking stocks in the market. Instead, it simulates trading a system that has certain characteristics.

The system takes care of the ‘stock picking’ for you so that you can focus entirely on the most important aspects of trading-position sizing and letting your profits run. Our game has ten levels that get progressively more difficult to master.

However, once you've mastered these principles, you'll know you've mastered some of the skills to trading success. (Levels 1-3 are free).

To complete this game, you must master four key principles: (1) understanding the importance of R-multiples; (2) understanding the difference between expectancy(预期) and probability(概率); (3) learning how to let profits run without letting them escape; and (4) using position sizing to make sure you have a low-risk trade. The Position Sizing™ Game is designed to drive these principles home by giving you the experience of making (or losing) money in a game environment where losing is safer. Through this game, you’ll begin to understand these principles experientially without having real money at stake.

My book, The Definitive Guide to Position Sizing [], explains all of these ideas conceptually if you’d also like that. In Level 1, 60% of the trades (on the average) will be winners. Most of them (55% of all trades on the average) will be 1R gains.

Thus, on 55% of the trades, you'll earn whatever you risk. If you risk $1,000, you’ll earn $1,000 on a 1R gain.

In Level 1, 5% of all trades will be 10R gains. In other words, if you risk $1,000 when one of these trades comes along, you'll make ten times what you risked or $10,000. However, 35% of the trades in Level 1 will be -1R losers and 5% of the trades will be -5R losers. You'll get a chance to feel the impact of having a -5R trade in this level. Expectancy is a mathematical formula that tells you how much you will win on the average per dollar risked. It takes into account both the probability of winning (or losing) and the size of the R-multiples.

Casino gambling games are all negative expectancy games; you cannot make money in the long run unless you can do something to change the odds. In trading, you must play a different game from gambling. You must have a positive expectancy game on your side in order to make money in the long run.

Expectancy is actually the average R-multiple that your system will give you per trade. When a trade fails, you lose one dollar per share. When a trade works, you make 15R or $15 per share! What if you were only right 30% of the time and you make money in three of ten trades? Video Audio Mixer Key. In ten trades you'd make $15 per share an average of three times. Your total gain would be $45 per share.

In the same ten trades, you'd lose $1 per share on the average seven times. Your total loss would be $7 per share. Over the ten trades you'd end up making $38 per share (or 38R), even though you were only right 30% of the time. Large R-multiples in your favor are much more significant than ‘being right’ for making money in the market. Remember that! And if you had risked 1% of your total equity on this system, you would have been up about 38% at the end of 10 trades. Another (more difficult) way to determine expectancy is to multiply each R-multiple (both negative and positive) by its probability of occurrence.

Then sum the results (i.e., subtracting the values of the negative R-multiples) to get the total expectancy. All of the probabilities, of course, must add up to 100%. If not, it means that you have missed some.

In the case of our stock example just above, you multiply 0.3 by 15 (which is 4.5) and 0.7 by minus 1 (which is minus 0.7). When you add 4.5 and minus 0.7, you have a total expectancy of 3.8R. This means that you will average in gains, over many trades, 3.8 times your risk on each trade. If the calculation of expectancy seems complicated, we have good news.

The game calculates the expectancy for you-both of the system and the mean R-multiple of your trades. You can find the expectancy of each level in the statistics window and your running expectancy within the level is displayed on the trade window. You'll also know the probability of each trade. Since the game randomly generates the trade results from the system’s R-multiple distribution, you could easily get 10 losers in a row, which goes against the expectancy. However, at the end of the level, you'll probably be pretty close to the expectancy of that level. It's just like real trading in that you won't know whether the next trade will be a winner or not. The game will also give you the expectancy of the trades to date as they are randomly picked.

This way, you will know how far off the trades are from the likely expectancy that was built into the game. There is a critical aspect to expectancy that you must understand. Expectancy and probability are not necessarily the same. As I said earlier, you must have expectancy on your side, but you don't need to have probability on your side.

Let's look at the example given earlier. You win 30% of the time, and when you win it's a 5R gain. You lose 70% of the time, and when you lose it's a 1R loss. You only make money 30% of the time. Thus, the odds are against you.

However, the game has a positive expectancy, giving you an average of 3.8 times your risk each trade or 3.8R. In the last four levels, you'll have to earn your big R-multiples by letting your profits run-just like in real trading. Losing trades will happen quickly, but winning trades will take time to develop. When a winning trade starts, it will probably just be a 1R win. You now have to wait another trade to determine if it will continue and how much of your gain you want to risk.

When a winning trade starts, the chances of it continuing are good. However, you'll need to decide if you want to risk it all or just a portion of your profits.

At each level, you will have to study thoroughly the Level Statistics under the View Menu to come up with a position sizing strategy for that level and decide how much you want to risk on each trade. One of the main lessons you must master in order to profit will be the art of position sizing. You can think about various strategies, such as playing the market’s money or any of the other strategies presented in Trade Your Way to Financial Freedom [] or in The Definitive Guide to Position Sizing [] and try them out without risking real money.

Now, you can also experience the effects mistakes can have on your trading. No trader is 100% efficient-no one trades error free.

When you have a good feel for position sizing, try lowering your efficiency to 95%. That’s only one mistake out of 20 trades. When you make a mistake on a losing trade (i.e., minus 1R) then it becomes a larger losing trade (i.e., minus 2R). But if it is a winning trade, then it suddenly becomes a losing trade (i.e., +10R might become minus 1R).

I believe there are few traders who are 95% efficient in their trades. Try trading at 90% efficiency in the game. If you want a real challenge, try to get through level 1 at only 85% efficiency. It’s very difficult. Most people go bankrupt because they do not understand the most important aspects of trading or their greed gets in the way.

Here are some of the most common mistakes: 1) risking too much; 2) risking more after a losing streak; 3) failure to develop a strategy for position sizing; 4) failure to stick with your position sizing strategy; 5) risking too little and not making any money; 6) not letting profits run enough during a winning trade, especially at the beginning of the trade; and 7) risking all of your profits continually during a winning trade. Position sizing is the key to making money in the markets and that's what you need to learn in the first few levels.

Most people think that the key to success is analyzing the markets and finding the next winner. And that's why a lot of people have trouble making money in the markets. Instead, the most important question you need to ask is, ‘How much money should I risk on this particular trade?’ This game is designed to teach you success secrets and steer you away from the biases that most people have.

You'll learn a lot more by experimenting on your own than if I just gave you a strategy to use. After all, you won't lose any real money playing the game and learning in the process.

Here’s a general hint: risk a small percentage of your equity-enough to do well, but not so much that you'll be bankrupt if a 5 to 1 loser comes up right away. You might consider increasing the percentage when you are ahead and decreasing it when you are behind. The key is to experiment liberally so that you discover the importance of position sizing and the multitude of ways to implement it in your trading. In addition, make sure you risk a large percentage (if not 100%) of your profits, when you begin winning trades. Imagine that you are trying to catch the start of a winning trade; however, you have a tight stop. You might end up getting stopped out three or four times in a row. But you keep the stops tight because you know you'll catch the winning trade one day.

That's the same thing as playing this system. Pretend that every one of these trades looks like a winning trade is set to start on the chart.

You are ready if it takes off on you as soon as you enter. If not, you get out at a small loss and try again.

The systems in Levels 1 - 6 result in profit or loss on a trade with a single price movement and then the system makes the next stock selection. The systems in Levels 7-10 allow a profitable trade to continue through multiple time periods-you can have a winning trade. In a winning trade, your job is to manage your profits and your risk as the stock price moves during multiple time periods. The number of shares that you entered with is fixed through the length of the winning trade; you cannot increase or decrease the number of shares.

You manage your risk in a winning trade by adjusting the dollar amount per share at risk as the trade progresses. Think of adjusting the risk per share during a winning trade like adjusting a trailing stop as the price moves higher.

Each time period progression of the winning trade will have a positive or negative result that will affect the accumulated profits. The winning trade will progress until it hits a -1R result or when the accumulated profits for the trade have gone to $0 or below. You will not know when the winning trade will end. When the winning trade ends, the system will select a new stock for the next trade.

You start the game with $10,000 in equity. If the first stock selected is a $10 stock and you decide to risk $1 of that price, you have a risk per share of $1 (a stop price of $9). If you then decide to buy 100 shares of that stock, you will consume 10% of your equity for that position and risk a total of $100 (100 × $1) or 1% of your equity. Trading results in the game are expressed in terms of R-Multiples or Risk Multiple. It is the size of the initial stop times the amount of shares purchased. Your R-Multiple is the figure that you multiply your risked amount by in order to determine your gain or loss on that trade.

The system in Levels 1 and 2 provides you a 55% chance of earning +1R. That is to say that that in 55% of the trades, you will earn 1 × R or 1 times your total risk. A 1R trade on the $100 risked as mentioned above will earn you a $100 profit on that trade. The system in level one also provides a 35% probability of -1R or losing 1 × your risked amount, a 5% of +10R and a 5% chance of a -5R trade result.

A -5R trade will result in a $500 loss if you risked $100 on the trade. The historical expectancy for the trading system in Level 1 is 0.45. This means that on average over time, a dollar of risk will earn $0.45 in return. You would see a figure close to this average over many thousands of trades. Over 75 trades, however, the trades will generate an actual expectancy above, below, and around that average, but rarely ever right at it. This is due to statistical concept of variability. Think of a pair of dice-on a given roll, you will get anywhere between 2 and 12.

After many rolls, the average result will reach 7. In this game, your trades are like the dice, you will see many results away from the long term average and over time the results will move toward the average. You can monitor your actual ongoing expectancy right on the trading screen with every trade. This is a position sizing game, not a trading game. Each level has a system that screens the market for you and picks the stocks to trade. The system’s criteria for stock selection are irrelevant to the game. Each system has been engineered to produce a positive expectancy (i.e., you can expect to make more money than you lose over time if you buy the stocks that the system has selected).

Your role in the game is to come up with a position sizing strategy that tells you how much to risk on each trade so that you make a 50% return in 75 trades without blowing up your account. If you think that price charts will help you, they’ll be displayed in the even numbered levels. Normally, your system would tell you where to set the stop price but in this game, you decide where you’d like to set it with the amount risked per share. How much are you comfortable risking on a per share basis? At what price would you think a trade is not going to work out? This is subjective and based on your personal preference but start somewhere.

You can play again and change it in the next game. After determining the risk per share, next decide how many shares you want to buy for the total risk on the trade.

To help you think about that, I’ve provided the trade probabilities and results for the system in the ‘Level Statistics’ section under the ‘View’ menu. What’s the worst case trade result? How many losing trades might you get in a row? What’s the expectancy for the system in this level? Think about these things to help you determine how much you should risk on each trade. If the expectancy is 0.45, what percentage would you risk to get the maximum rates of returns? (Hint: what's the worst loss against you?) Are you willing to risk more just in case the worst-case loss does not come up before a 10 to 1 trade hits?

In 75 trades, how many of those are you likely to see? These are some of the issues you need to consider. Here’s another hint: You might want to simply risk 1-2%. You can do that by setting your stop at some arbitrary level such as $5.

Then select the number of shares that will now risk about 1-2% of your account. For subsequent trades, you could keep your risk per share at $5 and just adjust the number of shares to keep your risk percentage constant. You will be able to do this continually unless a stock comes up that sells for less than $5/share. You need to work out these issues for yourself. They are issues that every investor/trader faces, but most people ignore them. What would happen if you risked 100% of your equity on a trade?

What would happen if you risked 45%? What would happen if you risked 20% or 10% or 5% on a trade? Remember these are just round figures I’m picking out.

You could get two -5R trades in a row or you could make 40 trades without ever hitting a single -5R. Come up with a strategy that deals with these possibilities, use it in the game, and see what happens. Figuring out a good strategy and learning from your mistakes is one of the skill requirements of this game. Here are some things to think about though. What is your worst-case loss? It's a four percent probability of -3R, so at what amount of risk would you risk bankruptcy on a trade if that one hits? With a 70% probability for each trade to cause a loss, how many losses could you have in a row?

You could easily have 9 losses in a row in 75 trades. You might even have a streak of losses as long as 20 trades or more. You need to play to survive so you can make money on the +30R trades that might come up. With those two guidelines, design your own strategy. You’ve come a long way to make it through six levels.

Starting at this level and running through the end of the game, the trading system allows the trader to let their profits run on stocks moving up in price-a winning trade. Once you have a stock that runs, you have much more favorable odds of profiting during the winning trade than you did with the initial trade.

Look at the statistics in the ‘Level Statistics’ section of the game to see the probability during the winning trades. As with the previous levels, you are presented a stock that the system picked for each trade. Your job is to determine whether to go a long or short and then determine how much you will risk on each share and how many shares you will buy or sell.

If you go short, then your probability of winning will be high; however, your expectancy doing this will be negative because (1) when you lose, you will lose big and (2) if you lose, you get locked out of any winning trade. We strongly suggest that you go long rather than short. This is very much like your experience in Levels 5 and 6. When you are long and a trade has a positive result, it then enters a winning trade. Now the probability of continued winning is very much in your favor. In a winning trade, you need to manage your risk.

In the markets, traders can manage their position size by adjusting how many shares they own and by adjusting the stops. In the game, you keep the number of shares you started the winning trade with through the entire trade. You manage your risk by adjusting the risk per share as you maintain the position while the stock price moves. Think of the risk per share during a winning trade like a trailing stop amount.

You can risk all of your gains if you like and not trail the stock price at all by clicking on ‘Let it Run.’ You can easily double your profits on most time period progressions when you ‘Let it Run’, but you also increase the risk of a big hit to your accumulated profit for the trade and to your equity each time you do that. To preserve some of your profits, it would be prudent to risk less than your total accumulated trade profits by reducing the risk per share amount. This is like tightening up a trailing stop as the prices rises. In the markets letting your profits run is not as easy as just watching them double each day. Winning trades end and trending stocks tend to have big corrections.

Thus, you’ll need to protect your profit in some way during the trend. If you hit a -2R or -3R time period and your loss is less than your accumulated trade profits, the winning trade continues. Whenever you hit a -1R time period-regardless of how much or little you are risking-the winning trade is over. Again, the winning trade ends when you either hit a -1R loss or you lose all of your accumulated trade profits and original risk amount due to a -2R/-3R loss. Be aware, if you are risking a lot of or all of your accumulated winning trade profits, your trade may end with a large loss, which can cause you to lose not only all your accumulated winning trade profits, but much more if you simply decide to double up at each time period progression. As with previous levels, you are presented with a stock for each trade. Your job will be to determine whether to go long or short and then determine how much you will risk.

If you go short, then your probability of winning will be high, but your expectancy will be negative because (1) when you lose, you'll lose big and (2) if you lose, you'll get locked out of winning trades. We strongly suggest that you go long.

This is very much like your experience in Levels 5 and 6. Going long in Level 7 provides you the new opportunity to participate in a winning trade. Your long trades will result in a lot of losses but the winning trades allow you to more than make up for those many losses. In some cases, winners are reckless and lucky. Traders who want to be reckless and earn a high score can let their profits ride on every time period progression.

They have a chance at astronomical returns but an even a bigger chance of blowing up their account. Are you willing to go bankrupt trying to reach the moon? Let me ask the same basic question in a different way. Which do you think requires more skill-winning a short term trading contest or making consistent trading profits over a long period of time? This game involves long-term survival through 10 levels of play. People who complete all 10 levels will be survivors who have practiced sound position sizing through the entire game.

They have learned how to let their profits run while also protecting them. That's what I'm trying to teach. First, you can’t effectively use either the Total Equity Method or the Reduced Total Equity Method in this game because the systems here can have only one position open at time. The game structure basically forces you to use the Core Equity Method for determining your equity. You didn’t have to wait until this level to think about incorporating a market’s money strategy into your position sizing strategy. Any profit that you’ve earned over your initial equity for the level could be considered market’s money regardless of whether that’s from individual trades or from a winning trade. The next time you play the game, use a market’s money strategy from the beginning and see what kind of effect that has on your results.

Just like Levels 7 and 8, when you are not in a winning trade, the system will present you with a new stock for each trade. Your job will be to determine whether to go long or short and then determine how much you will risk. In Levels 9 and 10, you'll also need to get a feeling for the probabilities because none are provided to you. If you go short, then your probability of winning will be high.

However, your expectancy will be negative because 1) when you lose, you'll lose big and 2) if you lose, you'll get locked out of winning trades. We strongly suggest that you go long. In the game, as with real trades, there’s only one position sizing question to answer when entering a trade: ‘How much do I risk on each position?’ You establish the risk amount through your initial stop price (what’s your risk per share?) and your decision about how many shares to buy (which determines your total risk). In the first few levels of the game, you will get the result immediately. Later in the game, you’ll have to manage your risk from time period to time period in order to grow your profits (as you would in real trading).. I've designed The Position Sizing™ Game to help you learn the secrets to trading success before you play the markets. This game does not simulate picking stocks in the market.

Instead, it simulates trading a system that has certain characteristics. The system takes care of the ‘stock picking’ for you so that you can focus entirely on the most important aspects of trading-position sizing and letting your profits run. Our game has ten levels that get progressively more difficult to master. However, once you've mastered these principles, you'll know you've mastered some of the skills to trading success. (Levels 1-3 are free).

To complete this game, you must master four key principles: (1) understanding the importance of R-multiples; (2) understanding the difference between expectancy(预期) and probability(概率); (3) learning how to let profits run without letting them escape; and (4) using position sizing to make sure you have a low-risk trade. The Position Sizing™ Game is designed to drive these principles home by giving you the experience of making (or losing) money in a game environment where losing is safer. Through this game, you’ll begin to understand these principles experientially without having real money at stake.

My book, The Definitive Guide to Position Sizing [], explains all of these ideas conceptually if you’d also like that. In Level 1, 60% of the trades (on the average) will be winners. Most of them (55% of all trades on the average) will be 1R gains. Thus, on 55% of the trades, you'll earn whatever you risk. If you risk $1,000, you’ll earn $1,000 on a 1R gain. In Level 1, 5% of all trades will be 10R gains. In other words, if you risk $1,000 when one of these trades comes along, you'll make ten times what you risked or $10,000.

However, 35% of the trades in Level 1 will be -1R losers and 5% of the trades will be -5R losers. You'll get a chance to feel the impact of having a -5R trade in this level.

Expectancy is a mathematical formula that tells you how much you will win on the average per dollar risked. It takes into account both the probability of winning (or losing) and the size of the R-multiples. Casino gambling games are all negative expectancy games; you cannot make money in the long run unless you can do something to change the odds.

In trading, you must play a different game from gambling. You must have a positive expectancy game on your side in order to make money in the long run.

Expectancy is actually the average R-multiple that your system will give you per trade. When a trade fails, you lose one dollar per share. When a trade works, you make 15R or $15 per share! What if you were only right 30% of the time and you make money in three of ten trades? In ten trades you'd make $15 per share an average of three times. Your total gain would be $45 per share. In the same ten trades, you'd lose $1 per share on the average seven times.

Your total loss would be $7 per share. Over the ten trades you'd end up making $38 per share (or 38R), even though you were only right 30% of the time. Large R-multiples in your favor are much more significant than ‘being right’ for making money in the market. Remember that!

And if you had risked 1% of your total equity on this system, you would have been up about 38% at the end of 10 trades. Another (more difficult) way to determine expectancy is to multiply each R-multiple (both negative and positive) by its probability of occurrence.

Then sum the results (i.e., subtracting the values of the negative R-multiples) to get the total expectancy. All of the probabilities, of course, must add up to 100%. If not, it means that you have missed some.

In the case of our stock example just above, you multiply 0.3 by 15 (which is 4.5) and 0.7 by minus 1 (which is minus 0.7). When you add 4.5 and minus 0.7, you have a total expectancy of 3.8R.

This means that you will average in gains, over many trades, 3.8 times your risk on each trade. If the calculation of expectancy seems complicated, we have good news. The game calculates the expectancy for you-both of the system and the mean R-multiple of your trades. You can find the expectancy of each level in the statistics window and your running expectancy within the level is displayed on the trade window. You'll also know the probability of each trade. Since the game randomly generates the trade results from the system’s R-multiple distribution, you could easily get 10 losers in a row, which goes against the expectancy. However, at the end of the level, you'll probably be pretty close to the expectancy of that level.

It's just like real trading in that you won't know whether the next trade will be a winner or not. The game will also give you the expectancy of the trades to date as they are randomly picked. This way, you will know how far off the trades are from the likely expectancy that was built into the game. There is a critical aspect to expectancy that you must understand.

Expectancy and probability are not necessarily the same. As I said earlier, you must have expectancy on your side, but you don't need to have probability on your side. Let's look at the example given earlier. You win 30% of the time, and when you win it's a 5R gain. You lose 70% of the time, and when you lose it's a 1R loss. You only make money 30% of the time. Thus, the odds are against you.

However, the game has a positive expectancy, giving you an average of 3.8 times your risk each trade or 3.8R. In the last four levels, you'll have to earn your big R-multiples by letting your profits run-just like in real trading. Losing trades will happen quickly, but winning trades will take time to develop. When a winning trade starts, it will probably just be a 1R win. You now have to wait another trade to determine if it will continue and how much of your gain you want to risk. When a winning trade starts, the chances of it continuing are good.

However, you'll need to decide if you want to risk it all or just a portion of your profits. At each level, you will have to study thoroughly the Level Statistics under the View Menu to come up with a position sizing strategy for that level and decide how much you want to risk on each trade. One of the main lessons you must master in order to profit will be the art of position sizing. You can think about various strategies, such as playing the market’s money or any of the other strategies presented in Trade Your Way to Financial Freedom [] or in The Definitive Guide to Position Sizing [] and try them out without risking real money.

Now, you can also experience the effects mistakes can have on your trading. No trader is 100% efficient-no one trades error free. When you have a good feel for position sizing, try lowering your efficiency to 95%. That’s only one mistake out of 20 trades. When you make a mistake on a losing trade (i.e., minus 1R) then it becomes a larger losing trade (i.e., minus 2R). But if it is a winning trade, then it suddenly becomes a losing trade (i.e., +10R might become minus 1R).

I believe there are few traders who are 95% efficient in their trades. Try trading at 90% efficiency in the game. If you want a real challenge, try to get through level 1 at only 85% efficiency. It’s very difficult. Most people go bankrupt because they do not understand the most important aspects of trading or their greed gets in the way. Here are some of the most common mistakes: 1) risking too much; 2) risking more after a losing streak; 3) failure to develop a strategy for position sizing; 4) failure to stick with your position sizing strategy; 5) risking too little and not making any money; 6) not letting profits run enough during a winning trade, especially at the beginning of the trade; and 7) risking all of your profits continually during a winning trade.

Position sizing is the key to making money in the markets and that's what you need to learn in the first few levels. Most people think that the key to success is analyzing the markets and finding the next winner. And that's why a lot of people have trouble making money in the markets. Instead, the most important question you need to ask is, ‘How much money should I risk on this particular trade?’ This game is designed to teach you success secrets and steer you away from the biases that most people have.

You'll learn a lot more by experimenting on your own than if I just gave you a strategy to use. After all, you won't lose any real money playing the game and learning in the process. Here’s a general hint: risk a small percentage of your equity-enough to do well, but not so much that you'll be bankrupt if a 5 to 1 loser comes up right away. You might consider increasing the percentage when you are ahead and decreasing it when you are behind. The key is to experiment liberally so that you discover the importance of position sizing and the multitude of ways to implement it in your trading. In addition, make sure you risk a large percentage (if not 100%) of your profits, when you begin winning trades.

Imagine that you are trying to catch the start of a winning trade; however, you have a tight stop. You might end up getting stopped out three or four times in a row. But you keep the stops tight because you know you'll catch the winning trade one day. That's the same thing as playing this system.

Pretend that every one of these trades looks like a winning trade is set to start on the chart. You are ready if it takes off on you as soon as you enter.

If not, you get out at a small loss and try again. The systems in Levels 1 - 6 result in profit or loss on a trade with a single price movement and then the system makes the next stock selection.

The systems in Levels 7-10 allow a profitable trade to continue through multiple time periods-you can have a winning trade. In a winning trade, your job is to manage your profits and your risk as the stock price moves during multiple time periods. The number of shares that you entered with is fixed through the length of the winning trade; you cannot increase or decrease the number of shares. You manage your risk in a winning trade by adjusting the dollar amount per share at risk as the trade progresses. Think of adjusting the risk per share during a winning trade like adjusting a trailing stop as the price moves higher. Each time period progression of the winning trade will have a positive or negative result that will affect the accumulated profits. The winning trade will progress until it hits a -1R result or when the accumulated profits for the trade have gone to $0 or below.

You will not know when the winning trade will end. When the winning trade ends, the system will select a new stock for the next trade. You start the game with $10,000 in equity.

If the first stock selected is a $10 stock and you decide to risk $1 of that price, you have a risk per share of $1 (a stop price of $9). If you then decide to buy 100 shares of that stock, you will consume 10% of your equity for that position and risk a total of $100 (100 × $1) or 1% of your equity. Trading results in the game are expressed in terms of R-Multiples or Risk Multiple. It is the size of the initial stop times the amount of shares purchased.

Your R-Multiple is the figure that you multiply your risked amount by in order to determine your gain or loss on that trade. The system in Levels 1 and 2 provides you a 55% chance of earning +1R. That is to say that that in 55% of the trades, you will earn 1 × R or 1 times your total risk. A 1R trade on the $100 risked as mentioned above will earn you a $100 profit on that trade.

The system in level one also provides a 35% probability of -1R or losing 1 × your risked amount, a 5% of +10R and a 5% chance of a -5R trade result. A -5R trade will result in a $500 loss if you risked $100 on the trade. The historical expectancy for the trading system in Level 1 is 0.45.

This means that on average over time, a dollar of risk will earn $0.45 in return. You would see a figure close to this average over many thousands of trades. Over 75 trades, however, the trades will generate an actual expectancy above, below, and around that average, but rarely ever right at it. This is due to statistical concept of variability.

Think of a pair of dice-on a given roll, you will get anywhere between 2 and 12. After many rolls, the average result will reach 7. In this game, your trades are like the dice, you will see many results away from the long term average and over time the results will move toward the average. You can monitor your actual ongoing expectancy right on the trading screen with every trade.

This is a position sizing game, not a trading game. Each level has a system that screens the market for you and picks the stocks to trade. The system’s criteria for stock selection are irrelevant to the game. Each system has been engineered to produce a positive expectancy (i.e., you can expect to make more money than you lose over time if you buy the stocks that the system has selected). Your role in the game is to come up with a position sizing strategy that tells you how much to risk on each trade so that you make a 50% return in 75 trades without blowing up your account.

If you think that price charts will help you, they’ll be displayed in the even numbered levels. Normally, your system would tell you where to set the stop price but in this game, you decide where you’d like to set it with the amount risked per share. How much are you comfortable risking on a per share basis? At what price would you think a trade is not going to work out? This is subjective and based on your personal preference but start somewhere. You can play again and change it in the next game. After determining the risk per share, next decide how many shares you want to buy for the total risk on the trade.

To help you think about that, I’ve provided the trade probabilities and results for the system in the ‘Level Statistics’ section under the ‘View’ menu. What’s the worst case trade result? How many losing trades might you get in a row? What’s the expectancy for the system in this level? Think about these things to help you determine how much you should risk on each trade. If the expectancy is 0.45, what percentage would you risk to get the maximum rates of returns? (Hint: what's the worst loss against you?) Are you willing to risk more just in case the worst-case loss does not come up before a 10 to 1 trade hits?

In 75 trades, how many of those are you likely to see? These are some of the issues you need to consider. Here’s another hint: You might want to simply risk 1-2%. You can do that by setting your stop at some arbitrary level such as $5. Then select the number of shares that will now risk about 1-2% of your account. For subsequent trades, you could keep your risk per share at $5 and just adjust the number of shares to keep your risk percentage constant. You will be able to do this continually unless a stock comes up that sells for less than $5/share.

You need to work out these issues for yourself. They are issues that every investor/trader faces, but most people ignore them. What would happen if you risked 100% of your equity on a trade? What would happen if you risked 45%?

What would happen if you risked 20% or 10% or 5% on a trade? Remember these are just round figures I’m picking out. You could get two -5R trades in a row or you could make 40 trades without ever hitting a single -5R. Come up with a strategy that deals with these possibilities, use it in the game, and see what happens. Figuring out a good strategy and learning from your mistakes is one of the skill requirements of this game.

Here are some things to think about though. What is your worst-case loss? It's a four percent probability of -3R, so at what amount of risk would you risk bankruptcy on a trade if that one hits?

With a 70% probability for each trade to cause a loss, how many losses could you have in a row? You could easily have 9 losses in a row in 75 trades. You might even have a streak of losses as long as 20 trades or more. You need to play to survive so you can make money on the +30R trades that might come up. With those two guidelines, design your own strategy. You’ve come a long way to make it through six levels. Starting at this level and running through the end of the game, the trading system allows the trader to let their profits run on stocks moving up in price-a winning trade.

Once you have a stock that runs, you have much more favorable odds of profiting during the winning trade than you did with the initial trade. Look at the statistics in the ‘Level Statistics’ section of the game to see the probability during the winning trades.

As with the previous levels, you are presented a stock that the system picked for each trade. Your job is to determine whether to go a long or short and then determine how much you will risk on each share and how many shares you will buy or sell. If you go short, then your probability of winning will be high; however, your expectancy doing this will be negative because (1) when you lose, you will lose big and (2) if you lose, you get locked out of any winning trade. We strongly suggest that you go long rather than short. This is very much like your experience in Levels 5 and 6.

When you are long and a trade has a positive result, it then enters a winning trade. Now the probability of continued winning is very much in your favor. In a winning trade, you need to manage your risk. In the markets, traders can manage their position size by adjusting how many shares they own and by adjusting the stops.

In the game, you keep the number of shares you started the winning trade with through the entire trade. You manage your risk by adjusting the risk per share as you maintain the position while the stock price moves. Think of the risk per share during a winning trade like a trailing stop amount. You can risk all of your gains if you like and not trail the stock price at all by clicking on ‘Let it Run.’ You can easily double your profits on most time period progressions when you ‘Let it Run’, but you also increase the risk of a big hit to your accumulated profit for the trade and to your equity each time you do that. To preserve some of your profits, it would be prudent to risk less than your total accumulated trade profits by reducing the risk per share amount.

This is like tightening up a trailing stop as the prices rises. In the markets letting your profits run is not as easy as just watching them double each day. Winning trades end and trending stocks tend to have big corrections. Thus, you’ll need to protect your profit in some way during the trend.

If you hit a -2R or -3R time period and your loss is less than your accumulated trade profits, the winning trade continues. Whenever you hit a -1R time period-regardless of how much or little you are risking-the winning trade is over. Again, the winning trade ends when you either hit a -1R loss or you lose all of your accumulated trade profits and original risk amount due to a -2R/-3R loss. Be aware, if you are risking a lot of or all of your accumulated winning trade profits, your trade may end with a large loss, which can cause you to lose not only all your accumulated winning trade profits, but much more if you simply decide to double up at each time period progression. As with previous levels, you are presented with a stock for each trade. Your job will be to determine whether to go long or short and then determine how much you will risk.

If you go short, then your probability of winning will be high, but your expectancy will be negative because (1) when you lose, you'll lose big and (2) if you lose, you'll get locked out of winning trades. We strongly suggest that you go long.

This is very much like your experience in Levels 5 and 6. Going long in Level 7 provides you the new opportunity to participate in a winning trade. Your long trades will result in a lot of losses but the winning trades allow you to more than make up for those many losses. In some cases, winners are reckless and lucky. Traders who want to be reckless and earn a high score can let their profits ride on every time period progression. They have a chance at astronomical returns but an even a bigger chance of blowing up their account. Are you willing to go bankrupt trying to reach the moon?

Let me ask the same basic question in a different way. Which do you think requires more skill-winning a short term trading contest or making consistent trading profits over a long period of time?

This game involves long-term survival through 10 levels of play. People who complete all 10 levels will be survivors who have practiced sound position sizing through the entire game. They have learned how to let their profits run while also protecting them. That's what I'm trying to teach. First, you can’t effectively use either the Total Equity Method or the Reduced Total Equity Method in this game because the systems here can have only one position open at time. The game structure basically forces you to use the Core Equity Method for determining your equity.

You didn’t have to wait until this level to think about incorporating a market’s money strategy into your position sizing strategy. Any profit that you’ve earned over your initial equity for the level could be considered market’s money regardless of whether that’s from individual trades or from a winning trade.

The next time you play the game, use a market’s money strategy from the beginning and see what kind of effect that has on your results. Just like Levels 7 and 8, when you are not in a winning trade, the system will present you with a new stock for each trade. Your job will be to determine whether to go long or short and then determine how much you will risk. In Levels 9 and 10, you'll also need to get a feeling for the probabilities because none are provided to you. If you go short, then your probability of winning will be high.

However, your expectancy will be negative because 1) when you lose, you'll lose big and 2) if you lose, you'll get locked out of winning trades. We strongly suggest that you go long.

UpdateStar is compatible with Windows platforms. UpdateStar has been tested to meet all of the technical requirements to be compatible with Windows 10, 8.1, Windows 8, Windows 7, Windows Vista, Windows Server 2003, 2008, and Windows XP, 32 bit and 64 bit editions. Simply double-click the downloaded file to install it. UpdateStar Free and UpdateStar Premium come with the same installer. UpdateStar includes such as English, German, French, Italian, Hungarian, Russian and.

You can choose your language settings from within the program.