The magic of Money management

[Hamphser]

Every experienced trader will say the money management in trading is the important thing to keep your account alive and for my experience in trading I lose many accounts die first to bad money management and second for greed and getting more and more money, after all this bad experiences and when I keep money management in my eyes now I get my money adjusted with my capital and I required for every trader to give the most important attention for money management.

The rules for money management for me:
1. Make goals that could actually be achieved with your skill level
2. Always trade with a stop loss
3. Never over trade your account
4. Trust your indicators
5. Always protect profits
6. Trade with investment capital, not grocery money

and for you what is your experience with money management ?

Option no. 2 is always my habit on which i do really always put a stop loss everytime i do trade.Once i do risk i do set out on the money that i can afford to lose up on a particular day which its always been suggested and on this way you are really managing your capital or bankroll which you can still able to recover up as long you do have still funds this is why we should really protect the funds as far as we can. When we are still a newbie its not really avoidable on making such mistakes on where we would really learn up from those wrong things that weve done and later on we would realize that we should not commit the same mistake anymore.

[nightmanisrightman]

Money management has to be the #1 skill for trading if not it is a close #2. The only other skill that may top it in terms of importance is emotion management. One could argue either is the #1 skill but either way they are

both super integral to becoming a good trader. Luckily for me I had these skills coming from my past job and the transition has been smooth and I sometimes forget that is a big part of the game.

[KenChanYu]

Money management has to be the #1 skill for trading if not it is a close #2. The only other skill that may top it in terms of importance is emotion management. One could argue either is the #1 skill but either way they are

both super integral to becoming a good trader. Luckily for me I had these skills coming from my past job and the transition has been smooth and I sometimes forget that is a big part of the game.

  i agree i think everytime we need to manage our money even in our daily life of living not only in trading or in investing manage money is really needed in life because if we dont mange our money maybe it will really end up loosing and  maybe it will also end up to depression and the worst it can kill you in terms of suicide because money is life today you cant live life without money.thats how important money mangement.

[redsun114]

Every experienced trader will say the money management in trading is the important thing to keep your account alive and for my experience in trading I lose many accounts die first to bad money management and second for greed and getting more and more money, after all this bad experiences and when I keep money management in my eyes now I get my money adjusted with my capital and I required for every trader to give the most important attention for money management.

The rules for money management for me:
1. Make goals that could actually be achieved with your skill level
2. Always trade with a stop loss
3. Never over trade your account
4. Trust your indicators
5. Always protect profits
6. Trade with investment capital, not grocery money

and for you what is your experience with money management ?

Nice money management tips. In addition, established your entry and exit points. And of course our emotions. Used our brain not our heart in making the decision to sell or just hold. Most of us here made a lot of mistakes during our endeavor with trading. Some lost interest, some continue and learn from their mistakes. This mistakes really made us to be successful in trading. And for those who have lost interest, if you have to analyze they don't have that mindset to focus and the rules of money management you have put up above. They can go there without any idea, and then when they lose their money its time to hang up the gloves. I hope newbies will learn from your tips and enjoy trading.

Discipline is no doubt very much important thing in anyone’s life and you are going to have nothing in your life if you lack discipline. Money management is the most important thing as it is money which you need to have in your pocket if you want to fulfill your needs.

You need to manage your money in a way that you have something in your pocket along with some amount of money as your investment.

[777Bitcoin]

You're also forgetting

> Only invest what you can lose

Seriously, I have seen too many threads about people losing life savings betting on one stupid currency / bet / position.

This one catches my attention and for sure I will take not of it. This is more about not being greedy and not to gamble everything. Try to be smart investors/traders, open my eyes to possibilities to refused unwanted or too good to be true investment ideas from others. Live a day and earn for a year mentality must be change accordingly. I must.

[huige007]

Money management is one of the best thing that everybody should learned because that will become the key for them to succeed in life because if you know how to manage your money then you already know what to do for your future earnings and so on and so forth. Money is the most important thing in this world so we should master budgeting it.

Umm…it is very important for sure because a lot of the people are earning from a lot of the sites and they want to invest but they are not having the right and the proper place to invest for you. I use to manage my budget and I look at my possible income to invest then I invest my money for the good purpose, as you said it is very important to managethen it istrue indeed.

[setupbounds]

Every experienced trader will say the money management in trading is the important thing to keep your account alive and for my experience in trading I lose many accounts die first to bad money management and second for greed and getting more and more money, after all this bad experiences and when I keep money management in my eyes now I get my money adjusted with my capital and I required for every trader to give the most important attention for money management.

The rules for money management for me:
1. Make goals that could actually be achieved with your skill level
2. Always trade with a stop loss
3. Never over trade your account
4. Trust your indicators
5. Always protect profits
6. Trade with investment capital, not grocery money

and for you what is your experience with money management ?

Nice money management tips. In addition, established your entry and exit points. And of course our emotions. Used our brain not our heart in making the decision to sell or just hold. Most of us here made a lot of mistakes during our endeavor with trading. Some lost interest, some continue and learn from their mistakes. This mistakes really made us to be successful in trading. And for those who have lost interest, if you have to analyze they don't have that mindset to focus and the rules of money management you have put up above. They can go there without any idea, and then when they lose their money its time to hang up the gloves. I hope newbies will learn from your tips and enjoy trading.

Discipline is no doubt very much important thing in anyone’s life and you are going to have nothing in your life if you lack discipline. Money management is the most important thing as it is money which you need to have in your pocket if you want to fulfill your needs.

You need to manage your money in a way that you have something in your pocket along with some amount of money as your investment.

If you want to live a happy life, then you need to take care of your money. You have to manage it in a way that you should always have something in your pocket after spending all your money in order to meet your daily expenditures so that you can use that money at the time of need. You cannot not do anything in your life if you don’t have money in your pocket. So think well before spending your money.

[Seansky]

Every experienced trader will say the money management in trading is the important thing to keep your account alive and for my experience in trading I lose many accounts die first to bad money management and second for greed and getting more and more money, after all this bad experiences and when I keep money management in my eyes now I get my money adjusted with my capital and I required for every trader to give the most important attention for money management.

The rules for money management for me:
1. Make goals that could actually be achieved with your skill level
2. Always trade with a stop loss
3. Never over trade your account
4. Trust your indicators
5. Always protect profits
6. Trade with investment capital, not grocery money

and for you what is your experience with money management ?

The 6th rule for money management I think is not needed, common sense is enough for anyone to not use money needed for daily living to invest. Besides the rules listed by you OP, having a rule to not to invest on too suspicious altcoins is needed in order to minimize losses. Even if one trades with stop loss strategy, if one always trades on shitcoins or on soon to be useless altcoin, one will always incur some loss.

[crazycatwoman03]

Money management is one of the best thing that everybody should learned because that will become the key for them to succeed in life because if you know how to manage your money then you already know what to do for your future earnings and so on and so forth. Money is the most important thing in this world so we should master budgeting it.

Umm…it is very important for sure because a lot of the people are earning from a lot of the sites and they want to invest but they are not having the right and the proper place to invest for you. I use to manage my budget and I look at my possible income to invest then I invest my money for the good purpose, as you said it is very important to managethen it istrue indeed.

Right,  money management is very important in this industry because if you are not able to manage well your money,  there is a chance that you are not  going to prosper your earnings too.  Managing  your financial assets is very effective in making sure that you and your family will have a good future.

I also think that being able to manage well the money is the  secret of millionaires.

[Freyya08]

If you want to be successful, you need to Learn how to manage your finances. Create a goal, make a time frame. For me, making a lists of my daily needs helps me keep track of my money. Spend less on your wants and focus on your needs. start saving as early as you can. Make an investment plan.

[sukamasoto]

Before I trade, I set my personal profit ( usually 10 % ~ 15 % ) and once I got it, I stop for some time.
With profit, I can turn out my money to other expense but if I've loss, I still on profit because my last winning are greater than current losses !

[jack05]

The most important step is setting a goal, when i do it other steps are easier. Usually i want earn 10% from one investment so i exactly analys before i buy this coin

[sarah7912]

The most important in trading is to trade with money that you can afford to lose, and then compound this money into further trades and grow your account. At the end of the day, the game of trading is no different from the game of poker: It's a game of odds, where you try to minimize odds with your skills (or your insider information).

I know some people on Wall Street and anyone will admit the fact that luck is important in trading, no matter how much skill you have, therefore never risk any money that should be going into paying bills. Sooner or later trades go wrong and you don't want to be on that situation.

I agree with you that Forex or trading like poker depends on luck but also on the news, time and impact

[btcjocan]

Every experienced trader will say the money management in trading is the important thing to keep your account alive and for my experience in trading I lose many accounts die first to bad money management and second for greed and getting more and more money, after all this bad experiences and when I keep money management in my eyes now I get my money adjusted with my capital and I required for every trader to give the most important attention for money management.

The rules for money management for me:
1. Make goals that could actually be achieved with your skill level
2. Always trade with a stop loss
3. Never over trade your account
4. Trust your indicators
5. Always protect profits
6. Trade with investment capital, not grocery money

and for you what is your experience with money management ?

When it comes to money management, I simply make list of the things that necessary to buy. As an ordinary employee, I really need to manage my money ahead before I receive my salary every fifteenth day of the month because if I will not do it, I might left nothing in my pocket and  I will not be able to go to work. So what I did is that I will list all my expenses that I will going to spend for the money that I am going to receive to make sure that I can still have savings even just a little amount of money.