As it is mentioned here on ForexFactory, there are three “M”s that each trader should be working on constantly:
Method, Mind, and Money Management. My intention here is to open a discussion about the second “M”.
Almost every trader knows about the importance of Money Management in trading business yet it seems that this concept is not understood and well implemented by majority of traders. There is no doubt that having a sound trading system is vital in trading but is it enough too? Why majority of traders focus heavily on finding the best system and indicator but put less time/energy on learning money management techniques?
I felt that there is a need for some efficient and yet easy to understand text on the subject and decided to take action. Relax I am not going to teach math here, I just want to chat about money management techniques, reciprocate ideas and basically learn by open discussions, because I believe without money management I can never be successful in this endeavor. Hope you guys will find it useful too.
Thanks,
Moh
Method, Mind, and Money Management. My intention here is to open a discussion about the second “M”.
Almost every trader knows about the importance of Money Management in trading business yet it seems that this concept is not understood and well implemented by majority of traders. There is no doubt that having a sound trading system is vital in trading but is it enough too? Why majority of traders focus heavily on finding the best system and indicator but put less time/energy on learning money management techniques?
I felt that there is a need for some efficient and yet easy to understand text on the subject and decided to take action. Relax I am not going to teach math here, I just want to chat about money management techniques, reciprocate ideas and basically learn by open discussions, because I believe without money management I can never be successful in this endeavor. Hope you guys will find it useful too.
Thanks,
Moh