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

Trader's Toolbox

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"This is the final portion of the Trader’s Toolbox: Money Management series. This post will recap the 5 main rules discussed. If you missed our previous post please click here for : Part 1Part 2 or Part 3.

♦ Setting a goal - Decide what your trading objective is (quick profit and steady return) as well as your risk tolerance level

♦Diversification - If possible, allocate your finances between different products to avert the danger of getting wiped out in a single market. Don’t go overboard, though; think in terms of three to five unrelated instruments. Stick to markets you know, rather than risking the unknown for the sake of diversification...."

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