On Saturday, 15 May 2010, Ray Barros will present a risk management plan that is simple to follow and that will maximise profits while minimising risk. He will also present his own unique formula, Ebb & Flow Theory of Position Sizing, which can help you increase returns.

The risk management portion will address:

• Trade management (how to manage profitable trades for maximum return)
• Money management (the key idea for the new trader is position sizing)

Because trading is a probability game, we traders can experience a series of consecutive wins that produce large returns -- if we are willing to take an "all or nothing" mentality.

But, those wins carry the seeds of our destruction. The stats say that 92 percent of new traders fail -- not because their accounts drip away -- but because of one or two large losses. Yet, one or two losses should not have that power. It is just when we take excessive risk that one trade can become the one that destroys us.

The second element of trading success, the trading plan, will also be a topic of the presentation, featuring these two things unsuccessful traders fail to realize, namely, that successful plans:

1. Have certain core elements
2. Don’t merely show the trader a set of tools but also how to use them and how to turn them into a cohesive set of trading rules

About Ray Barros

Ray Barros is a professional trader, fund manager, author and educator. Since he started trading more than 20 years ago, his track record reflects a whopping 39 percent per annum return on a compounded basis.

He is also the author of The Nature of Trends, published by Wiley Press. Ray has been regularly featured in regional newspapers and publications, such as the Sydney Morning Herald, Business Times and Smart Investor.