If you are a swing trader, then the money management strategy is the only thing that will offer you edge in stocks trading. We all know that it is not possible for anyone to control how the market is going to react, but you sure can control your own investment and money and the degree of risk on every single trade that you have invested in.
The key secret to playing safe and making money in stock markets is to make sure that at every point the amount of money you stand to lose is least when you are not right. Any money and risk management strategy should be able to answer these two questions:
- How many number of shares should I purchase
- And how much of many funds can I put on risk on one trade
For a swing trader the number one goal should be to preserve the capital in order to stay active long enough to cover the losses and make profit. All this can be accomplished via a sound and shock proof moment and risk management planning.
Based in Munich Germany, Dragon Holdings AG specializes in designing algorithms for automated trade systems it also designs risk management systems for financial trading. Dragon Holdings AG is a part of Niraj Goel’s Clone Algo Group.