Which one is poor money management?

[ReggieFx]

Money management is the essential thing to be maintained by a trader to reap gain on the market. But what things should I do and what things should I avoid to make strong money management policy?

 

[Jessie]

Not adjusting lot size with the size of capital refers to poor money management!

 

[Mishra_86]

Spending impulsively without tracking expenses or saving for the future.

 

[kayasthpihu]

Poor money management often involves excessive reliance on short-term investments for long-term goals, neglecting the potential benefits of compounding and higher returns from long-term investment vehicles.

 

[Antho]

Money management is the essential thing to be maintained by a trader to reap gain on the market. But what things should I do and what things should I avoid to make strong money management policy?

For strong money management in trading, establish strict risk-reward ratios, diversify investments, and avoid emotional trading. Steer clear of chasing losses and regularly reassess your strategy to ensure alignment with market conditions and your financial goals.

 

[Manav Kole]

Poor money management involves risking a large portion of capital on single trades or failing to set appropriate stop-loss orders, leading to potential large losses and reduced overall profitability.

 

[N_Chandel89]

Poor money management is living Beyond Your Means that is spending more than you earn regularly, which can lead to debt and financial instability.

 

[Elektra-Greene]

Definitely going full margin is poor money management. You need a certain amount of money as your margin and a bit more to support that trade.

 

[Ravish Sinha]

Spending more than you earn.

 

[Antho]

Poor money management involves risking a large portion of capital on single trades or failing to set appropriate stop-loss orders, leading to potential large losses and reduced overall profitability.

agree! It's also key to have a plan for how much of the total capital to risk on trades.