- Never risk more than 2,5% of the capital on a single trade. - for small capital that percentage could be higher, but no more than 3,5%
- Always use stop loss. - I usually set up my stop loss to be 1,5 lower compared to my targeted profit.
- Never over trade - each trade I have a targeted profit and once I reach it just close the position
- Never let a profit run into loss - Once the trade became profitable I change the stop loss to be a profit
- Always go with the trend - trading is not easy and if I go against the other traders it wont be easier
- When you doubt get out! - when I am feeling that the trade is not good or I had a bad entry - just get out
These are my money management rules they are not many, but have get me out of troubles so far!