Money Management

Your strategy tells you when to trade. Money management tells you how much to risk. Without it, even a winning strategy can empty your account.

This section covers the principles and practical rules of money management so you can protect your capital and grow it consistently over time.

Topics covered in this section include:

• How to allocate your trading budget. Learn how to divide your capital across trades in a way that limits exposure and keeps you in the market long enough to see results.
• Position sizing. Understand how to calculate the right trade size based on your account balance and risk tolerance.
• How to use leverage correctly. Leverage amplifies both gains and losses. These guides explain how to use it without putting your account at unnecessary risk.
• Adding money management to your trading system. Learn how to integrate risk rules into your existing strategy so they become a natural part of every trade you take.

Most traders who blow their accounts do not lose because of bad analysis. They lose because they risk too much on a single trade, use leverage they do not understand, or chase losses by increasing their position size at the wrong time.

These are not rare mistakes. They are the most common ones. This section gives you the framework to avoid them and build a trading approach that protects your capital first.