What Money Management rules you follow

How important is MONEY MANAGEMENT for you ?

  • Money Management is the most important part of trading.

    Votes: 31 79.5%
  • It is good but it is not that important.

    Votes: 2 5.1%
  • I think it is important but never followed any.

    Votes: 5 12.8%
  • I think it is important but I could find a plan for me.

    Votes: 3 7.7%
  • It is completely useless in trading.

    Votes: 1 2.6%

  • Total voters
    39
  • Poll closed .
#21
Good old Alexander Elder gives these if I remember correctly:

(i) Do not risk more than 2% of equity on a single trade

(ii) Do not risk more than 6% of equity at any given time. In other words you can take 3 trades as per above. To take the fourth trade, you must exit one of the three trades - either in profit or loss.

(iii) If you are down 6% at any time, stop trading for that calendar month.
 

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