SIX MONEY MANAGEMENT RULES dapat artikel bagus dari meta formula dot com Six Money Management

Rules For Success Everyone knows that markets are risky, and that there is no crystal ball that wi ll let you predict a market s movements perfectly, that s where personal money manag ement rules comes in. Many traders will be looking for opportunities to make a p rofit, but good traders will also realize that sometime, somewhere, a market cor rection is going to occur. Since they don t want to endanger their capital, they w ill be prepared for this correction and use personal money management rules. They may even be able to profit from it, if they have good systems in place. Wit hout these kinds of systems, and without personal money management rules, a trad er can easily loose their capital to a market swing. Personal money management rules are the way to protect your capital and your pro fits. Developing your personal money management rules carefully, and paying clos e attention to these six personal money management rules can deal with even the most unexpected downturns in the market. These money management rules are import ant issues you must consider if you want to manage your trades safely and effect ively: I ll introduce the concepts now and go into them in more detail in the foll owing articles. The first of my personal money management rules is to lock in of the most common and frustrating mistakes that traders make guard their profits. Your trade may be showing a nice profit, al money until you do something to ensure that it's yours to your profits. One is failing to safe but it's only virtu keep.

The second of my personal money management rules is to take small losses and mak e big gains. It might seem self-evident, but many traders don t like to take small losses, believing mistakenly that they will recoup their losses eventually. But if you aren t willing take small losses, you ll eventually lose money. Keeping loss es small keeps your capital intact so that when a trade does become profitable, you can make big gains. The next of my personal money management rules is to use margin with caution. Ma rgin is a powerful tool that can really increase your profit, if it is used corr ectly. However, the fact that margin lets you make much more profit on successfu l trades also means you can lose much more on unsuccessful trades. Another of my personal money management rules that you must remember is to go to cash every time the market nears its top. When the market is about to turn, cas h is the safest alternative. This will allow you to stay away from market volati lity that makes it difficult to trade and can potentially devastate your account s. Another of my money management rules you should follow to protect you accounts i s to diversify your portfolio by finding trades with different risk levels in di fferent sectors. Then, if one sector experiences a sudden downturn, only a porti on of your account will be affected. Along with diversifying your portfolio, hed ge your risk. Hedging is a form of insurance, so it will cost you a bit by decre asing the profits you make on a play. But there are times when insurance is well worth the cost If you use these six personal money management rules consistently and incorporat ed them into your personal money management plan, you will drastically improve y our trading performance. But remember, your personal money management rules shou ld be in place before you ever buy the stock. After you're in the position, it's

too easy to get panicked by market actions or carried away by high expectations . If you have no personal money management rules, you will make mistakes. With a plan, you will be able to act calmly and rationally, and make many successful t rades. for more article visit us at http://jsxtrader.blogspot.com/