The importance of money management
When it comes to trading basics
, before you even think about putting your first trade on, you need to have a money management strategy in place that means you’re not putting too much money on the outcome of one trade.
The best way to ensure that you manage the money in your trading account well is to only place a small percentage of your trading pot into each trade. The smaller this percentage, the more trades you can put on if you hit a run of losses.
Only risk 2% per trade
When you trade, 2% of your trading account is a good rule to follow. This helps to lessen the risks to losing your entire trading pot.
So if you have R10,000 in your trading account, you’ll only risk R200 on each trade. This might sound like a very small amount. You may be thinking this isn’t enough to make big profits.
But it’s vital that you start off small. If you get a run of winning trades, the amount in your trading portfolio will grow. This, in turn, will increase the amount of money you’re willing to risk on each trade.
By risking only 2% of your trading pot on each trade, you can endure a run of losing trades without decimating your account in the process. Even the best of traders go through bad runs.
This rule will keep your losses to a minimum. And over time, your trading pot should grow.
So there you have it. A money management technique to ensure your trading account survives and thrives.
*********** Hot off the press ************
How would you like to make an extra R3,610 in 2 days? Or, how about R8,900 in less than 11 days?
What if I told you that you could in less than 10 minutes a day?
All you need is your cell phone and you could be making a LOT of money. Like one of our very happy subscribers, Dirk.
"Hi Guys, I just recently joined “the winning streak” team. Great results so far! Lost my first bet through my own stupidity... Did not play exactly like you tipped. Maybe a bit too excited? Played four of your bets so far and won on three! Would have been four if I didn’t mess up the first one. I have another three bets pending and will know the outcome tomorrow. My gains thus far is 76% (including my loss) Thanks team……keep the tips coming!”
So, if you want to get the upper hand in sports betting just like Dirk…
Click here to start your winning streak now!