CHAPTER 2: MONEY MANAGEMENT
The introduction defines the terms, buy-and-hold, investor, position trader, swing trader, and day trader.
How much do you need to trade or invest? Answer: $2,000 to $50,000. See the section Trading: How Much Money, Honey?
For definitions on order types, see Order Types: Read the Fine Print!
Read the fine print on how your broker handles the various types of orders. See Order Types: Read the Fine Print!
Adjust the amount spent on each trade according to market conditions. See Table 2.1.
After a bear market begins, cut the amount spent for new positions in half for each ten-percentage point decline in the S&P 500 index measured from the bull market peak. See Table 2.2.
Size the amount to spend on each trade according to market conditions, adjust the amount ...
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