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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 $250 Account $362. 1 Trade  $5 Max. Trades  50

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Money Management

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  1. Money Management An introduction to effective money management

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

  3. 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

  4. 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

  5. „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$

  6. “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

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