Money Management or Position Sizing – Part 2: OBJECTIVES

Basically, there are two main objectives of Money Management or Position Sizing: 1) Preserve Capital Preserving your capital should be the first and the most important objective of Money Management / Position Sizing for a trader. In order to be able to trade, you’ll need capital. As long as you have the money / capital to trade, you would still have a chance to make a recovery from your losses. However, if your capital is gone, you would have no chance at all to recover, as you have no more money for trading. In order to be successful in trading,...

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