How to Not Blow Up Your Trading Account

Book excerpt: How much are you willing to risk per trade? How much money can you hand to the markets and not lose your sleep, your house and your wife? This is a pretty serious game. Whenever money is involved you will find professionals. These professionals are waiting to take your money, they often are a lot more patient than you. Although sometimes very well regulated, there is no ethic whatsoever in this business where every participant is in it to make money. It is a zero sum game, meaning that there is a loser for every winner. Think about that. Learning proper money and risk management is key to achieving success in the markets. These skills will help you build a solid and long-lasting foundation for a prosperous trading career.