From the now-closed "Financial Freedom through Electronic Daytrading" thread, tradeRX said : "Turn it upside down ...don't go long but SHORT every trade! According to the expectancy of your system, 2 out of 3 times you will be in the money. Ride the 2 "losers" down (now winners to you) for four points, sell the one long "winner" quickly, and make a fortune! Trade your system backwards and make big bucks. Now you have..... 8 winning shorts = 8 wins @ 4 dollars X 1000 shares = $32,000. 4 losing longs = 4 losers @ 1 dollar X 1000 shares = $4,000. Total profit = *$28,000* (- commissions) That's $20,000 more profit just by turning your system on its head. " Not quite. You're incorrectly assuming that the 2 losing trades that were stopped out at -1 would have gone to -4. Ignoring commissions this is a zero-sum game so "by turning your system on its head" you should get a corresponding loss, not "$20,000 more profit". Having said that, I agree with you about trade (or money) management alone not being enough. Anyone who says they can make money without any advantage (eg. tossing of a fair coin paying even money) using only money management is not only a wizard but a magician.