What People Think About Management

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In summary, trade risk refers to the potential for financial loss or negative consequences arising from fluctuations in the value of goods or services traded between different countries.

Basically money management in trading is a defensive strategy that is meant to preserve capital. It is a way to decide how many shares or lots to trade at any given time based on your available capital. Successful money management can save you from draining your account when you hit a bad streak of losing trades.