The Number 1 Strategy called Position Sizing
Did you know that every single successful trader will be employing the tactic of position sizing within their profitable trading system. Position sizing is actually the number one, the most important aspect, when it comes to successful money management. By employing strict position sizing rules you can ensure that your losses are minimized and that you cannot lose more money on a single trade than you are prepared to. That is why we employ the 2% rule for successful risk management. What that means is that any trade cannot be more than 2% of your trading float. This figure can change but we’d stick to 2%.