What Money Management rules you follow

Discussion in 'Risk & Money Management' started by mark8tune, Oct 11, 2016.

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How important is MONEY MANAGEMENT for you ?

This poll will close on Oct 11, 2017 at 8:02 AM.
  1. Money Management is the most important part of trading.

    29 vote(s)
    80.6%
  2. It is good but it is not that important.

    1 vote(s)
    2.8%
  3. I think it is important but never followed any.

    5 vote(s)
    13.9%
  4. I think it is important but I could find a plan for me.

    3 vote(s)
    8.3%
  5. It is completely useless in trading.

    1 vote(s)
    2.8%
Multiple votes are allowed.
  1. mark8tune

    mark8tune Member

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    Money Management is the most ignored topic among newbie traders I guess, When someone starts trading they focus on trading systems, strategy, which gives results (80%, 90%) a holly grail indicator, the same did I but now I have come to the conclusion Money Management is the most important key to success in trading. One of my friend very often say " There should be money to manage it if you have a very little money what would you manage", but I think " One cannot succeed in market till he/she does not have great money management system" but the worst situation with me is I myself do not have MM plan. Very often I thought of contacting some members in this forum and ask them to teach me something about MM, but I was afraid if they hated this, but here in this thread I am begging please share the MM rules you, May be your post would enlighten a loosing trader and with your rules he/she would be successful.
    I am hoping your ideas would completely change my trading results.

    Happy Trading
     
    vijkris likes this.
  2. mark8tune

    mark8tune Member

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    Visited some threads looking for my answer and I found a post by AW10 liked that very much.

     
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  3. vijkris

    vijkris Well-Known Member

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  4. mark8tune

    mark8tune Member

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  5. mark8tune

    mark8tune Member

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    Some great management rules found from Vijay's thread http://www.traderji.com/trading-dia...ew-way-pivot-trading-vwap-41.html#post1131836


    Really worth reading stuff again and again
    Thank you Vijay sir
     
  6. mark8tune

    mark8tune Member

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    In fact I need to print these to read them almost 20 to 30 times. Coz this Money Management seems toughest thing more difficult than find a good system. I think there are 1000 of systems and they have their own pros and cons but it is PSYCHOLOGY and MONEY MANAGEMENT which makes the difference.
     
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  7. mark8tune

    mark8tune Member

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    Looks like nobody interested to share their Money Management rules. Poll results say most of the traders think Money management is the most important thing in trading but they did not share their rules perhaps they do not want to share or they do not have any, they only accept its importance, like me He he he he:annoyed::annoyed::annoyed::annoyed::annoyed::annoyed::annoyed:
     
    Last edited: Oct 13, 2016
  8. Charles07

    Charles07 Active Member

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    What more do you need ? You urself have found out and mentioned it in the above posts.
    i believe every1 follows similar MM rules as mentioned abv. Just tweak it as per ur Strategy and ur comfort level. :)
     
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  9. suri112000

    suri112000 Well-Known Member

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    I follow 20 : 80 formula in managing my funds.

    If my capital outlay is Rs.10 lakhs, then I trade with Rs.2 lakhs and remaining Rs.8 lakhs go into long term investments such as Debt, FDs, Equity Mutual Funds, Equity positions, real estate.

    I trade with Rs.2 lakhs only to enhance the return on total capital outlay. As such, I am not a compulsory trader. I trade only when the time is ripe. Usually I trade 2 to 4 times in a month. Generally I avoid intraday trading.

    1:1 leverage is the mantra until you become matured and comfortable in trading.
     
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  10. tradertrader

    tradertrader Active Member

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    Best plan.
     
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