Money Management

[tradewin]

I intend to use several SB firms when I start trading 'for real'. Can anyone suggest any tips or tools, or even better programs/spreadsheets etc. that are out to assist with Money Management.

Thanks
Scott

 

[damianoakley]

Hi tradewin,

I personally don't spreadbet, but I would say the best tool to assist with money management is YOU.

That might sound a bit corny, but in my view there are many software packages available which claim to help you out with sophisticated "money management methods" that you really don't need.

As I see it, money managment really involves 3 main elements: where you set your stop losses, where you take your profits, and how much money you "bet" on each trade.

These are things you can work out yourself without needing to spend money on programs or similar.

It's good that you are thinking about Money Management before trading for real as good money managment is the difference between success and failure for a lot of traders.

Good Luck,


Damian

 

[TWI]

I would add YOU and EXCEL. If you cannot put together a spreadsheet yourself then you probably do not understand the risk you are taking. Even if you can, you probably do not understand the risk you are taking.

 

[damianoakley]

Hi twalker,

I would agree completely with the use of YOU and EXCEL !

Excel is probably the best tool of all actually.

Keeping things simple is key in my opinion.


Thanks


Damian

 

[Richdad23]

Stop Loss Stratergy

Hello,

I am improving my knowledge on money management and would like to implement a particular Stop Loss strategy for my longer term trading. I would like to know (for example) how you sell half your position if you are going long and then sell the other half of the position later??

I understand the principle but don’t know how to set it up on the spread betting platform using the various order types? I would really appreciate it if someone could provide a simple example of how to do this.

I use Finspreads and Capital Speads.

Thanks very much

Cheers

Richdad

 

[gle101]

I intend to use several SB firms when I start trading 'for real'. Can anyone suggest any tips or tools, or even better programs/spreadsheets etc. that are out to assist with Money Management.

Thanks
Scott

Yes, good thinking, money management is absolutely the most important "tool" trading he markets. Make it easy, 1-2% of your total trading capital (stop loss included). Do not cross the line thinking it is safe. An incredible lineup of losing trades can occur anytime, often when you least expect it to be possible.