Notes
- In this lesson, Michael presents different money management systems and their impact on the shape of the equity curve.
- Money management is the most important part of trading.
- A poor trading strategy involves risking more pips than you aim to gain (e.g., risking 40 pips to gain 20 pips). This approach leads to substantial drawdowns and is generally discouraged.
- It is crucial to have a sound money management plan that adapts to winning and losing streaks.
- Every trader will encounter a losing trade. Equally so, every trader will experience a series of losing trades.
- Professional money management concepts keep an informed trader’s equity smoothed.
Money Management That Works - Model 1
Money Management That Works - Model 2
Money Management That Works - Model 3
Money Management That Works - Model 4
Money Management That Works - Model 5
Money Management That Works - Model 6
Money Management That Works - Model 7
Money Management That Works - Model 8
Money Management That Works - Model 9
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