Trader tend to believe that they do not need to address money management until they can prove that a particular trading system will work and they can make money using it. This is the most common areas for serious mistakes by traders and it is a costly mistake.
As I have always mentioned that a sound money management is a component of a complete trading system. So, do not wait to manage your trading money until you can prove that a trading system makes money. Although you can gain profits from the system without managing your trading money but, who know, you might gain much more profits with a proper money management.
Of course, if the trading system is a bad one, even the best way of managing money cannot turn it to be a good one. Read more