Money Management System for Traders

Name: Money Management System for Traders
Rating: 4.8 (15 reviews)

A Practical Approach to Design an Effective Money Management System for Active Traders

Created byMr. Cryptotracker

Last updated 7/2022

English

What you'll learn

How to develop a money management system for trading.
What is the risk of ruin and its role in money management.
How to calculate the optimal fraction of capital to be risked in each trade
How to calculate trade size?
How to develop a trading journal to track the profit/loss

Course content

1 section • 5 lectures • 47m total length

Introduction: The Importance of Money Management4:18
Welcome to the first episode of the “money management systems course.” A practical approach to designing a money management system for active traders.
We are going to have a quick view of the topics we are going to learn in this course.
Risk of Ruin and Optimal Percentage to be Risked in Each Trade12:23
In this episode, we are going to introduce you to a very important concept in risk management; Risk of Ruin.
How to Calculate the Position Size Based on the optimal Percentage of Risk11:40
In this episode, we are going to learn how to calculate your trade size based on your optimum percentage of risk in each trade. Also, I will introduce you to two handy websites where you can easily calculate your trade size for the FOREX and Cryptocurrency markets.
The Vital Statistics You need to Record in Your Trading Journal8:29
In this episode, you will learn about the vital statistics your need to record in your trading journal.
How to Record Your Trades' Statistics in the Trading Journal10:33
In this episode, I’m going to teach you how to develop a good trading journal and how to monitor the vital statistics we learned in the previous episode in this journal.

Requirements

Having a good grasp of how financial markets work
Having a trading plan/strategy that gives you an edge

Description

This is the game-changer for those traders who have already developed a good trading plan but are not still profitable.

Money management is the most important piece of the pie that many traders like to ignore and that many educators don’t talk much about. To be honest, a trader cannot be successful if he or she isn’t focused on managing risk and reward properly.

In this course, you will learn about various important statistics that affect your profit and loss. These statistics will give you the historical data to adjust your money management system and also adjust your trading system if needed.

The concept of risk of ruin will be presented to you and you will understand its importance in your trading journey.

You will learn how to calculate your optimum percentage to be risked in each trade based on your historical trading data, such as your win ratio and payoff ratio. Moreover, you will learn how to calculate the position size based on the optimum percentage of risk you are allowed to take in each trade. A few handy websites will be introduced to you which you can use to calculate your risk of ruin and trade size.

You will also learn how to develop a trading journal to monitor vital statistics.

Who this course is for:

This course is designed for all traders regardless of the financial markets they are working in (Stock, FOREX, Cryptocurrency, Option, etc.).