Money management in trading

Money management is what allows you to protect your capital and also optimize your trading performance. If you don't apply strict money management, you can't win on the financial markets. Managing your risk well means having the right position sizes, knowing how to place and move your stop losses, taking into account the risk/return ratio. Money management allows you to trade without stress.

Risk management is what makes the difference between a winning and losing trader. If you are new to the financial markets, your goal should not be to make money, but not to lose money. Learning money management is carried out on a demo account. Take time to understand the mechanisms of leverage.

Be aware that the greater the leverage, the greater your risk. It is important to apply this risk management to all your trades. All you need is one exception to lose all your capital. This section discusses the main elements of money management and the various questions you may have about it.