What is Money Management?

For a speculative investor, there are two aspects to optimizing a trading strategy. The first and most important goal of a trader is to achieve a positive expected risk-adjusted return. Once this has been achieved, the trader needs to know what percentage of his capital to risk on each trade. The underlying principals of money management apply to both gambling and trading, and were originally developed for the former.



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Posted: July 18th, 2010
at 11:45pm by Koookiecrumbles

Categories: what is?,trade

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