Summary
In conclusion, effective money management in trading hinges on limiting losses, correct position sizing, diligent record-keeping in a trading journal, and the formulation of a solid trading plan. Implementing these strategies can substantially increase your chances of achieving trading success.
My goal for this chapter was to provide you with strategies to limit losses and also with the capacity to properly formulate a trading plan, track its progress, and ensure proper risk management before and during the trade.
In the following chapter, we’ll delve into the essentials of a trading system, emphasizing the importance of understanding your strategy intimately, testing it thoroughly, and being prepared for any market conditions.
