Money management

Money management is an essential component of learning to trade to win. Many trading systems and educators tell you that a basic rule of trading is “risk 2% of your account on a trade. Trading is a high-risk pass time and this may seem to make sense when you first hear it. But the reality is, it oversimplifies trader money management.

Whether you consider yourself “rich”, “poor” or “average”, there’s simply no way that risking 1% – 2% of all your capital makes any sense. There is an experience factor involved with trading that varies widely from one trader to the next. Given this fact, it makes no sense whatsoever that a new trader with only say 10k to his name should risk 2% of their account on any trade; he has no real trading skill yet and only 10k in his account.

EnigmaSignal actively encourages you to establish Smart Money Management rules to trade by. Our educators and trader coaches will work with you to create them. By setting risk/reward parameters and having mathematically proven risk management in place, EnigmaSignal makes money management a core component of tour trading education and trading strategy.