Learn How To Fish
- Thread starter VJAY
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Shared by XRAY
THE IMPORTANCE OF MONEY MANAGEMENT
“Money management is the most important part of a trading strategy.”
You will often see this quote in books about trading, but I disagree with the premise of the statement. In reference to this, let’s introduce two important tenets
of money management:
1. No money management technique can turn an unprofitable trading strategy into a profitable trading strategy.
2. Poor money management technique can turn a profitable trading strategy into an unprofitable trading strategy.
According to the first tenet, we need a winning idea in order to trade profitable. Because of this, I believe that designing a profitable strategy is the first and foremost key to a successful trading program.
Source:Lars Kestner.
THE IMPORTANCE OF MONEY MANAGEMENT
“Money management is the most important part of a trading strategy.”
You will often see this quote in books about trading, but I disagree with the premise of the statement. In reference to this, let’s introduce two important tenets
of money management:
1. No money management technique can turn an unprofitable trading strategy into a profitable trading strategy.
2. Poor money management technique can turn a profitable trading strategy into an unprofitable trading strategy.
According to the first tenet, we need a winning idea in order to trade profitable. Because of this, I believe that designing a profitable strategy is the first and foremost key to a successful trading program.
Source:Lars Kestner.
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