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any different ?
Feb 26, 2020 at 08:27
Mitglied seit Oct 22, 2019
43 Posts
Money management is simply managing your money in a safe and effective manner in order to grow your trading account effectively where as risk management ensures that you manage the unavoidable downsides to your capital whilst trading.
Mitglied seit Mar 03, 2020
9 Posts
Mitglied seit Jul 23, 2020
696 Posts
Mitglied seit Jul 23, 2020
816 Posts
Nov 12, 2021 at 12:35
Mitglied seit Aug 22, 2020
8 Posts
Actually, most of traders can't distinguish these two things and they're convinced that money management is the same as risk management. Generally speaking, it's really like that. However, if we dive deeper, we note that money management implies only management of your capital and deposit, for example you decide how much money you are able to devote to particular position. When we speak about risk management, it also includes some management of your funds, nevertheless it also includes the risks inside your position, for example, if you see that your position is in minus, you decide what risk percentage you can afford yourself. You put 10$ on a bull position, and you see that you already have 6$ because there is a very strong bear trend. So, you tell yourself that if there would be 5$ and lower, you exit the trade. Of course, it's only when you trade without SL.
Mitglied seit Aug 05, 2021
394 Posts

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