This article deals with one of the most important aspects of trading - money management.
Although there are plenty of trading systems and trading strategies with good win/loss ratio, proper money management can change the outcome of the net profit amount for any trading system.
Essentially, money management strategy is a statistical tool to control the risk exposure and profit potential when we enter into a trade; and by applying it, we can control our emotions and lack of plan (the main reason why most of traders lose their money).
The importance of determine a stop-loss
C.O.N.T.R.O.L... When a trader lose control the results are often disastrous. Many traders often enter the market with a profit target, but without a clearly defined protective stop-loss.
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