Money management in the field of stock trading is almost as important as stock selection. Without proper money management it is very hard to make money while trading stocks. And in fact poor money management can send your balance spiraling down faster than poor stock selection. Because if you hit a rough patch, where you are losing money, which always seems to come in faster torrents than winning streaks, than without proper money management, you will lose huge chunks of dough while floundering.
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