SwingTrader1
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Money Management
This is a great topic in trading because its fairly straight forward BUT! most traders dont exercise this crucial part of trading.
Ok here is the big secret dont risk more than you can afford to lose....
Ta Da
Ok enough goofing around. A simple yet effective way to manage your money is like this. Dont risk more than 3% of your account on any trade. Thats it.
The other piece of advice I would pass along is this, if you make 5 trades in a row and their all stinkers. You need to go back to the drawing board and find out where you're going wrong.
Last but definitely not least, and keep in mind this is just my opinion, not the only one.
Start small, I mean very small. No more than $200 dollars max. Trade micro lots and just see how you will hold up while trading with real money. If you do good than you dont need to add more because your account is growing. If you do bad you didnt burn up the kids college fund.
This is a great topic in trading because its fairly straight forward BUT! most traders dont exercise this crucial part of trading.
Ok here is the big secret dont risk more than you can afford to lose....
Ta Da
Ok enough goofing around. A simple yet effective way to manage your money is like this. Dont risk more than 3% of your account on any trade. Thats it.
The other piece of advice I would pass along is this, if you make 5 trades in a row and their all stinkers. You need to go back to the drawing board and find out where you're going wrong.
Last but definitely not least, and keep in mind this is just my opinion, not the only one.
Start small, I mean very small. No more than $200 dollars max. Trade micro lots and just see how you will hold up while trading with real money. If you do good than you dont need to add more because your account is growing. If you do bad you didnt burn up the kids college fund.
