Money, Risk, Trade Managment ?????

Gidday

I would be very interested in what peoples definitions are between Money/Risk Management and Trade Management or weather they are seen as the same thing.
Because to me they are once and the same thing, MM tells my how much I can risk and TM tells me where to place my entries, stop and exits etc in relation to my risk and targets etc.

Cheers

If you work with one position in the market at a time they are separate, if you have multiple positions the two are intertwined, entering or exiting a position may effect your overall risk profile.

Hi Kiwi06

It seems that for many traders:

1. Method: Setup and entry
2. Money: Money Mgmt = Risk Mgmt = a function of both position size and stoploss (exit); includes scaling in/out, if applicable
3. Mind: Trade Mgmt = mainly concerns ability/inability to implement proper exits, after a trade has been entered

Whereas I prefer to categorize it:

1. Method: Expectancy = a function of both Entry and Exit; includes scaling in/out
2. Money: Money Mgmt = position size only
3. Mind: the path toward attaining a level of stress-free trading

Risk Mgmt: I also differ in that I don't believe risk is manageable, at least beyond an individual trade level. Price moves however it wishes, and no matter how we set stoplosses or size positions, we have no control over the sequences of wins or losses that ensue. In this context, I equate risk with "luck" and "gambling"; however, the majority view seems to be that, because they believe that risk can be managed, trading is a matter of skill.

Trade Mgmt: This holds little meaning for me, as I simply see exit as the opposite of entry.

At the end of the day I guess all of these things are a matter of viewpoint. Profit is the universal goal; terminology amounts to semantics.

David