What is money management

With Respect to CreditViolet the Money Management definition is not entirely correct.
Don’t confuse Money Management with Stop placement. Stop placement does not address the question, how much?
Money Management or Position Sizing or Trade Size...
No Matter What You Call It, You Better Know It!
Money Management is like sex: Everyone does it, one way or another, but not many like to talk about it and some do it better than others. But there's a big difference: Sex sites on the Web proliferate, while sites devoted to the art and science of Money and Risk Management are somewhat difficult to find. Gibbons Burke
In the 21st Century it’s quite normal to manage one's own investments, yet few implement disciplined, professional money risk management principles or understand them. During the stock market bubble, limiting risk was always an afterthought, but given the recent price action and market conditions, it’s time to get serious!
Professional Money and Risk Management strategies, used correctly and in conjunction, are your foundations to proven trading success. Essentially, Money Management tells you how many shares to trade at any given time. It is a defensive concept that keeps you in the game to play another day. Don’t confuse Money Management with Stop placement. Stop placement does not address the question, how much?
Risk Management is the difference between success and failure in the trading of shares. It refers to Stop placement to minimize any losses and believe me you will have them.
Money Management optimizes capital usage. Few have the ability to view their portfolios as a whole. Even fewer traders and investors make the move from a defensive or reactive view of risk, in which they measure risk to avoid losses, to an offensive or proactive posture in which risks are actively managed for a more efficient use of capital.
For more than a decade I consistently found that those that failed to remove emotion and guesswork with regard to correct Money Risk Management, were destined to fail.
JBL Risk Manager is a simple but Professional Money Risk Management program that was specifically developed to combat the above problem BUT unfortunately the trial is currently only available to those that receive MetaStock format data. It will automatically calculate your Trade Size, Stop Loss price, Break-even price and so much more. It will indicate when to look for another trade and also automatically report on your performance by way of %win-loss ratios, average $win-loss, trade expectancy and much more, very easily.
It caters for Short trades as well as Long Trades, will handle multiple portfolios and currencies, cater for stock splits and allow for diary notes for each trade. I urge you to give it a try today! I know it will be one of your best trading decisions you will ever make.
Click here to download a free 14 day trial http://www.paconsulting.net.au/Share...-risk-manager/

Please quote the OP. FWIW see this: Which is closer to what you preach later.Lame. You sound like the ad guy. Quoting or marking out similarities does not make a valid argument.Rhetoric. About the only line worth reading.9 posts and counting, and not a single opportunity you've let go to advertise your favorite system. It is not a crime, but you sound like those spambots.

You could have simply written that my subjective views are:
PS: In case you're wondering, yes I am CV's spambot out here to counter anything anyone says against him. And yes, I tend to run into relationship risks.

" PS: In case you're wondering, yes I am CV's spambot out here to counter anything anyone says against him. And yes, I tend to run into relationship risks."

The r/r is good with handsome Profit Factor,,you may also count me in.

Hi spammy, my ad bot,

A few things to report to your master/mistress:

Nope, everyone doesn't do it. In fact looking at traders' records a comparison between sex and MM is futile as it may seem that more than half of human race is celibate or sterile.

Porn sites proliferate, if thats what you mean. This is visited mostly by people who dont have/get enough sex. Similarly MM software is mainly bought by people who dont know/understand/get enough of MM. Or else a simple Excel sheet is enough. What is required is a good understanding of statistics, that no software can provide.

If stop placement is not MM, neither is "how many shares to trade at any given time". Thats just position size. MM is much much more.


SInce when did buying a software ever become any good trading decision?

nice article on money management.

Quote:

12. Always have an actual stop in the market. "Mental stops" do not work.

very true!

You will find answer and an easy way to apply at http://www.paconsulting.net.au/Share...-risk-manager/