Money Management System
Published 7/2022
MP4 | Video: h264, 1280x720 | Audio: AAC, 44.1 KHz
Language: English | Size: 252.80 MB | Duration: 0h 47m

A Practical Approach to Design an Effective Money Management System for Active Traders
What you'll learn
How to develop a money management system for trading.
What is the risk of ruin and its role in money management.
How to calculate the optimal fraction of capital to be risked in each trade
How to calculate trade size?
How to develop a trading journal to track the profit/loss
Requirements
Having a good grasp of how financial markets work
Having a trading plan/strategy that gives you an edge
Description
This is the game-changer for those traders who have already developed a good trading plan but are not still profitable.Money management is the most important piece of the pie that many traders like to ignore and that many educators don't talk much about. To be honest, a trader cannot be successful if he or she isn't focused on managing risk and reward properly.In this course, you will learn about various important statistics that affect your profit and loss. These statistics will give you the historical data to adjust your money management system and also adjust your trading system if needed.The concept of risk of ruin will be presented to you and you will understand its importance in your trading journey.You will learn how to calculate your optimum percentage to be risked in each trade based on your historical trading data, such as your win ratio and payoff ratio. Moreover, you will learn how to calculate the position size based on the optimum percentage of risk you are allowed to take in each trade. A few handy websites will be introduced to you which you can use to calculate your risk of ruin and trade size. You will also learn how to develop a trading journal to monitor vital statistics.
Overview
Section 1: Money Management System
Lecture 1 Introduction: The Importance of Money Management
Lecture 2 Risk of Ruin and Optimal Percentage to be Risked in Each Trade
Lecture 3 How to Calculate the Position Size Based on the optimal Percentage of Risk
Lecture 4 The Vital Statistics You need to Record in Your Trading Journal
Lecture 5 How to Record Your Trades' Statistics in the Trading Journal
This course is designed for all traders regardless of the financial markets they are working in (Stock, FOREX, Cryptocurrency, Option, etc.).
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