Scott's post is correct.
It has nothing to do with setting a stop.
Part of developing a system is deciding on an appropriate stop.
Most intra-day traders use a 15-30 pip stop.
If you are trading on a longer time frame your stop will be higher.
Money management is - What do I plan to risk on each trade?
When you have a system that fits your trading personality the next step will be determining risk/trade.
Many traders starting out risk 10-20% per trade.
That's account suicide.
If you have a small account ($1000.00 or less) it might be a good idea to risk 1-2% per trade.
It has nothing to do with setting a stop.
Part of developing a system is deciding on an appropriate stop.
Most intra-day traders use a 15-30 pip stop.
If you are trading on a longer time frame your stop will be higher.
Money management is - What do I plan to risk on each trade?
When you have a system that fits your trading personality the next step will be determining risk/trade.
Many traders starting out risk 10-20% per trade.
That's account suicide.
If you have a small account ($1000.00 or less) it might be a good idea to risk 1-2% per trade.