How to do money management in trading
For Low and High portfolio
In trading everything is compulsory like price action (technical analysis,candlestick and chart patterns etc), risk management, money management and much more.
Today my topic is money management
First of all in my opinion i prefer to do a spot trading which is mainly low risk and low reward trading.
If you have low portfolio like 100$. How to manage it in spot trading?
Let me show you
Divide your 100$ in three parts
Part 1 40% = 40$
Part 2 30% = 30$
Part 3 30% = 30$
Trade in your desire pair first with 40$ if market goes up (5-10%) book your profit of that 40$
But if market goes down (8-10%) you can invest 30$ more in that pair and remaining 30 more like that.
Hope you will get my point
Portfolio 500$
For 500$ there are two scenarios
Scenario 1
Divide it in 5 parts 500รท5 = 100$
Get 5 trade of 100$ as like i discuss above
Scenario 2
Divide it in 2 parts 500รท2 = 250$
Trade each 250$ on method as i mentioned above
40%+30%+30% of 250$
For 1000$ portfolio
Divide it in 10 parts or 2 parts or 4 parts
This money management trick is 99% profitable but time taking and need patience. Stick with it and enjoy
Its that simple