money management > trading method?

October 15th, 2013, 05:06 PM

dryg

Risk to reward ratio is not money management. It is rather the outcome of a winning trading method. Just because you aim to make 3 times as much as you lose in a statistical sense it does not mean you will succeed unless you have some edge. Money management has to do mostly with how much you risk on position, proper leverage, portfolio heat, etc.

You are right, if you talk with traders that have traded for decadeS, they will tell you money management is the key to long term success.

October 17th, 2013, 08:08 AM

blb014

You are right, if you talk with traders that have traded for decadeS, they will tell you money management is the key to long term success.

Probably because they want to get rid off you and avoid answering questions about their edge.

money management > trading method?

Discussion in Psychology and Money Management

money management > trading method?