What is Money Management?

Kirill Eremenko
A free video tutorial from Kirill Eremenko
Data Scientist
4.5 instructor rating • 110 courses • 1,349,764 students

Learn more from the full course

Forex Strategies: Kelly Criterion, Larry Williams and more!

Forex Trading Strategies: Be Smart With The Larry Williams Formula, Fixed Ratio Method, and Kelly Criterion In Forex

03:14:13 of on-demand video • Updated May 2020

  • Apply the Larry Williams Money Management Method in your trading
  • Apply the Ryan Jones Money Management Method in your trading
  • Most importantly, confidently apply the Kelly Criterion to find out exactly what lot size (volume) to trade in any given transaction
  • Understand the Half-Kelly and how to use it to maximize your profits
English [Auto] Hello this is curial for Expo dot com. And welcome to the course of money management. And today we're going to start off with having a quick overview of what money management actually is. So when you're trading on any kind of market whether it's Forex or stocks futures options or even a sports betting you're hopefully if your trade surge is successful you're making money with time. So we'll illustrate this by the way of these coins so that's basically more and more money coming checkout. Well the that is the result of your trading strategy the way you open positions the way you close them what indicators you use what time of day you enter your positions or what time of day you exit them and so on. But on top of that you also have this second effect a secondary effect where your account balance is growing and money management refers to how you choose to reinvest the money that you're earning so you can basically ignore the new funds that are coming to your account. And that way you just entering new positions with the same transactional volume as before. And that's called a leaner management strategy. So basically when nothing changes or you can choose to increase your exposure to the assets proportionally to your balance and that's more like the Larry Williams line imagine method. So there are different approaches to this particular part of trading. And the reason why I created this course is because my management is very often overlooked. A lot of traders think that money management is not that important and that they'll get by using their existing knowledge skills or gut feel basically. But in reality money management is an art of its own. In fact there are traders like Ryan Jones who invest 90 percent of their efforts into money management and only 10 percent of the time is spent on the trading strategy and that stands to show that this concept is very important in your trading and it has to be addressed accordingly. And that's what we're going to be focusing on in this course and in the next tutorial outline in more detail what exactly we're going to be discussing through these tutorials overseeing them. And until next time happy trading.