Risk management essentials

Nailing how you deploy your working capital not just ensures profitability but survival

Good evening valued subscriber

Most traders bank roll management is appalling. It’s little wonder why so many, perfectly capable traders end up blowing the lot. The solution is simple but the implementation is not so easy. This post will deal with the solution. The implementation will take a layered explanation of ‘why’ people mess up a plan that works. We can talk about that in a future post.

Implementing a bank roll management is personal and depends on a few factors. I can only use my own plan as an example. Through trial and error I’m now at a level where I can print thousands in profit, almost every month.

Disclaimer: We’re not aiming for perfection. When you accept that your human, a complicated screwed up one with many different emotions, appearing in different hues at different times on different days, you’ll realise that behaving rationally all the time is not possible. Future posts will deal with how we can mitigate that, but if you atleast have a written plan on paper, it will go a long way in taking out the guess work.