The following money management articles explain the concepts of money management which are not too often utilised by retail investors and traders. In the field of trading, money management helps to answer the question "when I trade, how much do I trade".
Take a moment and ask yourself that very question......
The last time you made a trade how did you know how much to purchase? Money management enables you to apply mathematical formula to determine the right amount to purchase for each trade, all whilst taking into account your tolerance for risk and your account size.
Correct money management is a highly effective concept, yet it still remains relatively unknown by many traders and investors around the world. This topic will expand further on the concept of money management in trading and various position sizing formula's are shown with examples.
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