"How can one count on each win scoring large? You have no way of knowing before hand to what extent your one win will be. Hence, a lousy win/ loss ratio is likely to do you in regardless of your exceptional money management strategy. A good win rate is at least as important to your success as is good management. " Simple - you sit on your hand. Say IBM has a trading range of 20 points and you only willing to risk 1 if wrong. The hardest part is when you sell.