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Money Management in Trading
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ttn, and wg cae thm to not oon ther adng plan. Money mangement comes ater rng how
‘angers bg loses are to a taders canta and confidence Seu destoy Your pal Wit ses takes moe and more
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Enoug at our st sg ste utes ou ut Caneur poston Se sure ave Wade ong steak?
‘rating sequence = (OOD races
robabiliy of consecutive losing trades within #1000 trade
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9594‘Another key money management concepts your rislreward abo ts good trade torisk $100 forthe opportunity and
‘babii ta make $200 o $500 ent ya con wn half he time ac til ake moneys nto good tae orik $1,000 9
‘rake $100, one los wipes Outen wins een th S08 win ae you wl ose one. You want ois te forthe
pportuniytomake at.
oslo sang embingd with your ts lect ae your wo Bagel for meney management.
1.820% postion of your toa trading capa ges you potential stop las on your poston to equal 1 of total
tracing cata
2A 10% poston of yourtotal radi captal ges youa potential 1 stoploss on your posion to equal 1% of total
trading cata
53 poston of your total tracing capital ges you a potential 20 stop 5s on your poston to equal of oa
trading cata
Hare's an exempeothe dierent equiy curves withthe sme winningpecenage but base on diferent ies of ins and
‘bees Ako what happens vith ten lstsin a row based en higher skh to capt. Look at how dramatic money
_nanagement enenges equity curves of Re same wading system ests
inden
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‘yt ong. soa a prospeiy hee lot do wie the money management etnique incorpoate ito the
recnncalsystem”- Ea Seykota