Many beginners disregard money management as in instrument. They think: "I have a good strategy, so I'll risk 20 percent per trade. If I'm right - I'll win a lot. If I'm wrong, I'll blow up my account anyway."
Why should you use money management? The simple answer: there are hundreds of things that can go wrong. From "your cat jump on the keyboard" to "Third World War." In simple words, you can have the best strategy in the word, but it can just not your day, week, month, bad luck, destiny, curse, horrible mood.
With the money management and low risk per trade you have time, you should be ready to stop losses in a row. You should have margin of safety in trading.
King regards,
Josef
Why should you use money management? The simple answer: there are hundreds of things that can go wrong. From "your cat jump on the keyboard" to "Third World War." In simple words, you can have the best strategy in the word, but it can just not your day, week, month, bad luck, destiny, curse, horrible mood.
With the money management and low risk per trade you have time, you should be ready to stop losses in a row. You should have margin of safety in trading.
King regards,
Josef
