Comment: Money management is key.

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Money management is key.

p.s. Even not knowing the direction of a market, you can still make money.

What is more important than getting the direction right is money management.

Even if you've got the direction right, if you've got poor money management, you'll still lose it all.

Just look at Jesse Livermore. He had a great nose for direction, but he went bust so many times. He lost it all, and in the end, he blew his brains out.

In fact, it is probably better if you don't care what direction the market is going. That way you don't get irrationally wedded to your positions. In poker it is called getting pot committed.

Playing the market is a lot like playing poker. Have you ever played no limit Texas hold'em? There's a game that you can blow a lot of money in before you know what hit you! It is a lot like trading in the futures market like that.

You can learn a lot about money management playing Texas hold'em.

A great book, from one of the best in the business - Dan Harrington - is this one:

http://www.amazon.com/Harrington-Expert-Strategy-Limit-Tourn...

298 reviews and still a 5-star rating. Not a single 2- or 1-star review. Wow. Yes that book is that good.

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