Risk Management7 min read
Money Management Rules: The 10 Commandments of Trading
Money management is the difference between success and failure. Learn the 10 rules. The ten rules, from fixed-fractional sizing to weekly loss limits.
The 10 Commandments
- 1. Never risk more than 1-2% per trade
- 2. Always use stops
- 3. Never move stops wider
- 4. Daily loss limit: 3%
- 5. Diversify but don't over-diversify
- 6. Reduce size after losses
- 7. Let winners run
- 8. Trade with the trend
- 9. Keep a journal
- 10. Take breaks
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail investor accounts lose money when trading CFDs. Backtesting does not guarantee future results. Always consider whether you can afford the potential loss of your capital.