Money Management

Money Management An introduction to effective money management

What is Money Management? • Money Management is an effective way to • maximize your profits • limit your loss Your Balance Tradesize

Safe Trading Account$250Account$362 1 Trade  $5 Max. Trades  50 Win  $4 One trade a day for a month = 112$/month After one month add $4 to trade size Max. Trades  40 Win  $7.4 One trade a day for a month = 207$/month After two months  $250 + $112 + $207Total: $569

Medium Trading Account$250 1 Trade  10$ Max. Trades  25 Win  $8.3 One trade a day for a month = 232$/month Two trades a day for a month = 464$/month If you lose two trades a week  -66$/month Total: 398$/month

„Chess“ Management • Reinvest full profit Day 15*0.8 = 4  Profit4+5 = 9 Day 29*0.8 = 7.2  Profit9+7.2 = 16.2 Day 316.2*0.8 = 13  Profit16.2+13 = 29.2 Weekend Day 429.2*0.8 = 23  Profit29.2+23 = 52 Day 552*0.8 = 41  Profit52+41 = 94$

“Trees that are slow to grow bear the best fruit.” – Molière • 1-3 Weeks paper trading • Various systems • Feeling for the market • 2 Months  569$ • Cash out 250$  319$ • Pure profit trading • 15$ trade size  Profit = 12$ • $12 * 28 Days = $336

Money Management