trader’s journal

Trading successfully is about probability, not being right. Traders lose money on a regular basis.

Money management is an important strategy for minimizing loss and controlling risk. The first rule of money management is don’t trade the rent money. Or the grocery money.

I set up and funded a separate brokerage account specifically for short term trading. This is money I can afford to lose. When that account is empty, I’m done trading.

This entry was posted on Wednesday, November 5th, 2008 at 2:14 pm and is filed under Money Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.