any different ?
Feb 16, 2020 at 06:00
737 Views
9 Replies
Member Since Mar 03, 2020
9 posts
Mar 03, 2020 at 15:17
term is related but not the same. google
Member Since Jul 23, 2020
759 posts
Oct 07, 2021 at 15:30
Just reduce the risk and maintain your capital to survive in this game.
Member Since Jul 23, 2020
869 posts
Oct 07, 2021 at 20:34
I also think both are kind of similar.
Nov 12, 2021 at 12:35
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.
Member Since Aug 05, 2021
401 posts
Nov 17, 2022 at 18:46
Risk management helps you to minimize your losses, so you wind up with more money. They go together but aren't the same thing, but they do affect each other.
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