Money Management
The temptation is to play too big
You can't win if you don't
play - you can't play if you are broke.
Ignore money management
and play too big and you may end up just watching the
action. You can do very well waiting until you know
there is a profit to be made, this may involve missing
the early moves.
You can also do well bring too early, as long as you
do not use leverage. Money management is about controlling
your portfolio from a few bad moves.
Mismanaged portfolio risk
- leading to bad moves, unlucky moves, stinking moves
- happens.
You can do very well combining risk management techniques,
a no leverage small early investment, a bit of leverage
once the trend is established. That bit of no leverage
speculation helps you to track the market. Once the
trend has mostly run; - de-leverage and start to get
small again.
Get smaller early - just
like you started early. Defend your portfolio.
In investments you can
use stop losses and employ small commitments to correlated
investments.
"Get smaller"
if your bank roll is shrinking, if you want to survive.
You can't win if you don't
play.
You can't play if you run out of money.
return to top of page
