All traders have one thing in common. Whether you are an options trader, a day trader, a stock trader, or a little bit of everything type of trader, you are-at least in one way-like every other trader. No matter what the market or method, every trader must make a money management decision before entering a trade.
Sometimes this is not even a conscious decision. For these traders, money management never even crosses the scope of intentional thought. This is an extremely dangerous way to trade. It is amazing to me how much time traders spend researching where to get in and where to get out of the markets but then
allocate to each trade with little more than a dart throw. Through my own experiences and a few illustrations, I hope to convey that proper money management is the key to success in trading.
By Ryan Jones
