Understanding the simple rules of Money Management – Part II: Position sizing

Expert: Sunil Mangwani, CEO at FibForex123
Moderator: Maud Gilson, Conference Manager

Summary:
A trader must use the 3M’s (Money, Mind & method…in that order) in the trading plan to ensure success in trading.

Of the 3M’s, Money Management is the most important part…and ironically the most ignored.

If a trader understands only the following 2 rules of money management, it increases the probability of success –

1.) The Risk-to-Reward ratio.

2.) The correct exposure of the trading capital.

In the first part of this series, we looked at the importance of the Risk-to-Reward ratio.

In the second part, we will look at the correct exposure of capital and understand “Position sizing”.

Part 1 of this presentation is available too: Understanding the simple rules of Money Management – Part I: The Risk-to-Reward ratio

Webinar presented by FibForex123 and FXstreet.com