The magic of Money management

[sarah7912]

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 ?

[harizen]

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 ?

You have a nice statement there. Cheers.

1. It's mandatory to set a goal so that people can be inspired to achieved what must to achieved. Applied seriousness so that goal will be met. After reaching a certain goal, take it to the next level. It's not forever that we will just stick to what can we achieved by our skill level. Upgrade and improved it.

2. People must study this. Sometimes it was beneficial but sometimes not necessary.

3. Same idea with no. 2.

4. Also trust your judgement based on analyzation. People's other view about the trade must just taken as reference. Final output will be on ourself.

5. Maintained. It's a must.

6. Definitely agree.

[cellard]

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.

[pitham1]

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 ?

These are very good rules to have. Most people fill find it tough to maintain discipline and stick to these rules. Especially when you are trading Bitcoin. When the price is moving up quickly, people are tempted to invest more.

[xFGND]

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.

[BTCHakan]

I agree with all of the six. But I do not think it applies to crypto currency markets.

[Hydrogen]

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

Trading to me is a safer version of gambling with lower potential profits associated with decreased risk.

Consistency is the most important thing. Consistency is mainly achieved through being disciplined and resisting the influence greed and emotions have upon a person's thought process. Honesty is also important. Looking at facts and seeing them as they are. Having the courage to follow your own assessments even though they might appear crazy or farfetched at times.

Then there are abstracts like knowledge, identifying patterns/trends, tools & information which can contribute towards seeing things more or less clearly. I think a huge proportion of it is mental though. Its easy to have all of the relevent information and analysis and still make bad decisions. Critical thought and the decision making process could be a somewhat neglected area.

[Milo_Kidd]

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 ?

Money management is important to all of us. It is a good in feeling that the money we hardly earned was used wisely. But we cant deny the fact that we have mind that changed in just a minute becuase of temptation. Like we buy what we want instead of what we need. But it is for me that we have our own ways on how to manage our money. So in that skills all we need is inhance our ways and make it intelligently. The temptation is our obstacle.

[dothebeats]

Good advice. Money management isn't solely beneficial for traders but also to other normal individuals looking to save money and get the most out of what they spend. While it's true that money management is vital for one's bankroll to be maximized, it's also important to apply these in our own daily spending.

1. Buy what you can afford to lose.
2. Don't trust anyone with your money.
3. Allocate a certain amount for a certain area you need to spend on.
4. Don't immediately spend profits or anything that you gained.
5. Most importantly, spend wisely.

[Sir Cross]

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 ?

I agree with you OP. Having money management is important and a lot are ill educated or lack knowledge on this. Emotions and greed lead us to make bad decisions and worse, lose hard earned money. These guidelines will help not only the beginners but the experienced traders out there who have a hard time managing their finances.

Trading is a hard task and there is always a risk in it. A good trader is a able to calculate the risks and decide when is the best time to buy or sell. It's hypothetically impossible to predict accurately but one may make speculations through knowledge and experience.

[Cherylstar86]

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 ?

Money management is important to all of us. It is a good in feeling that the money we hardly earned was used wisely. But we cant deny the fact that we have mind that changed in just a minute becuase of temptation. Like we buy what we want instead of what we need. But it is for me that we have our own ways on how to manage our money. So in that skills all we need is inhance our ways and make it intelligently. The temptation is our obstacle.

In my point of view,managing money is quite very important for me. As the youngest in the family,I started managing my money since I was 8 years old. From that very moment I know how important money is. All I think that time was my parents worked hard for me to go to school so I have to save some money so I won't ask for more money from them. So until now I do the same it marked the things that had happened when I was a kid. I can still save money whenever I want to buy something which is not so important. The secret of managing money is you know how to discipline yourself to avoid over spending and that's the magic in it.

[sheenshane]

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 ?

Yes all you have mention is very important and ideas how to manage your money, spent wisely don't waist your money for nonsense thing. Last number you mention trade with investment capital, not grocery money. Maybe you spend some with grocery that's our basic daily needs and the rest is for investing capital. In spending money be wisely for you want much better to save and invest your money to grown up.

[EcoChavCrypto]

I also think that money management is one of the most important things about trading. I remember my first days of trading that I lost a lot of money because I did not know how to handle i and take care of it.. at the moment I try to have an excel sheet in where I can keep a daily check on my losses and profits. I think this is one of the most important steps if you are a newbie trader

[Dreamchaser21]

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 ?

That's a good strategy on money management this is really helpful for sure. If you don't mind i will use this rules for me to become more profitable in trading and also to prevent some loses that may occur in the future. After all we have one common goal here to gain more profit so we can survive in this world.

[entrepmind23]

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 I started trading, I have the worst money management because I tend to get greedy when I see that the trade is going the right way and I only put a small amount so without even studying the charts, I would go all in so that I can have bigger profits even if the price is already high and it seems that a reversal is approaching but then I already bought it so instead of having profits in that particular trade, I end up with a loss because of greediness and it didn't happen only once because I experience it many times so I need to control my emotions when trading because I already lose a lot because of it.

One mistake also is that I am holding on to a particular coin even if the loss is already half of the total amount I bought it because I didn't have a stop loss. When I am already in profits, I refuse to take it hoping to have more and then price suddenly drops and end up with a loss. I am slowly learning with my mistakes and I am slowly gaining because of the rules as what you stated OP.

[50ouncebrew]

The magic of money management is liberating. Once you're able to keep putting money aside to save BTC, it is the best feeling when you see the price continue to increase which matches your beliefs.

[Vaculin]

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 ?

Yes all you have mention is very important and ideas how to manage your money, spent wisely don't waist your money for nonsense thing. Last number you mention trade with investment capital, not grocery money. Maybe you spend some with grocery that's our basic daily needs and the rest is for investing capital. In spending money be wisely for you want much better to save and invest your money to grown up.

I agree.I guess in my opinion money management is the most essential thing wherein an individual must obliged to do,or else you will lost the money through spending it in nonsense things.And yes you're right,before thinking of saving more,we should always put into consideration first our basic needs,not our wants,through spending in grocery items which is really inevitable.We can really save if we focus on money management,and having self-discipline too is a must.

[player514]

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 ?

For me, the major part of money management is:

1) Pull out of assets if it's needed for real life. It doesn't matter if the asset is promising. If something is needed for real life and to take care of yourself, get it out.

2) Don't test your luck. If you told yourself that you would withdraw when you reach a certain point, make sure you go through with it. You don't know what will happen tomorrow; it's possible that something could drop significantly.

[Haynes]

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 ?

Every job sometimes will feel the failure. and that's what I know.
I am very happy to hear this, your experience is amazing to me.
I am a new person in bitcoin world. even for trading I have never been. the tips on success you share are helpful for me to learn more about bitcoin world.
if possible do not mind if you share more impressive experiences?

[darkangel]

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 ?

I think it is a list of really good rules that you can follow. However, not easy to implement it, these rules require us to have discipline and high self-awareness. We need to be serious about ourselves if we want to achieve our goal.