Traders Toolbox: Money Management Part 1 of 4 Revisited...

Trader's Toolbox

At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers.

The Trader's Toolbox posts are just another free resource from MarketClub.


"Crucial but often overlooked, money management practices can mean the difference between winning and losing in the markets.

Plenty of books, manuals, and software packages will help you form and opinion of a market, but not many will tell you how to trade once you have decided to get long or short. The goal of money management is to increase the odds of high quality trades. And as we’ll see, leaving the money management variable out of your trading equation can lead to ruin, even if you’re correct about the market direction.

In a broad sense, money management can encompass those elements of trading outside the initial decision to get long or short in a given market or markets – that is, how many positions to put on, when to get out, where to place protective stops. More specifically, it refers to the strategic allocation of capital to limit risk and optimize trading performance in the long run. Allocation of capital can refer to how much money to put into any one market or how much money to risk on any one trade. These decision directly affect how many positions to put on and where to place stop orders...."

Revisit the Trader's Toolbox Post: "Money Management Part 1 of 4" here.

One thought on “Traders Toolbox: Money Management Part 1 of 4 Revisited...

  1. Mong sự giúp đỡ từ marketclub hương dẫn cách đầu tư vàng và những cảnh báo báo hiệu thị trường có dấu hiệu đi lên hay xuống?
    Thanks very much

    "Marketclub expect help from gold investment instructions and warning signs are signs the market goes up or down?
    Thanks very much"

    Translated using Google Translate.

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