Money Management Secrets

Here’s mine:

I risk 1% of my account per setup. I look for a strong setup, enter with half my position size initially, and if it fails, I take a second entry with a full position size to either recover the loss or return to break-even.

What’s your approach?

Thanks.

A good Money Management tip is to never risk more than 1% of total equity on any trade. The reasoning behind this approach is that you will not be depended on any single trade. You may be wrong on 15-20 trades but will still have 80% of your investment.

I just use daily loss limits. if I have a $100 account I risk $5 a day so I can stay alive for 20 days.

I love using the 10 trade rule. Risking10% of my account on a trade . Although I use this for smaller accounts of 100$-1000$. I have 10 opportunities before blowing up the account. This rule is only effective with a 50% or more win rate strategy.

When I am not trading I remove the funds from my trading account to keep me from being tempted into trading outside my trading hours.

Wow, this is a good one.