CHAPTER 8

Money Management Before Trading

It’s never too early to start.

Success in Trading Depends on Money Management

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So far, we have been laying the foundations for share trading. So, this is the final section to get you ready for trading. Please bear with me as this section is extremely important and must be taken seriously before you become a trader. Understand that savings and a savings plan is a long term commitment and a necessary one for you to prosper as a trader. The main difficulty with long-term saving is that inflation is an unknown variable.

If we could be sure that prices are going to rise at an average rate of 4 percent a year ...

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