The following is a guide on how to manage money and risk when trading the stock market.
Money Management & Risk Control Rules:
1. What is the maximum percentage amount you are prepared to risk losing on any one trade?
a) as a % of total Account size?
A sound rule to follow here is the “2% Rule” which states that you should not risk more than 2% of your total account on any one trade. That means for a 100K account, the maximum you can risk per trade i...
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