Money Management in the Sports Trading
Money Management in Sports Trading is the basic “strategy” to follow always, in all situations, because no operational strategy will be successful without proper and strict money management.
The rules of money management in sports trading, as well as having a positive long-term impact on our operating account, will allow us to operate in the best possible way from the psychological point of view because we would already know at the beginning the sum that can be lost for each operation.
Importance of money management
Using a minimum and default percentage of our trading account we could endure an unfavorable series of transactions without affecting the initial account (bankroll), thus allowing to stay on the market in the long run.
The main reason those who trade in the Forex and Binary lose everything in a very short time is due to the fact that the broker “cunningly” grants a disproportionate financial leverage so that the customer self-destructs in a short time, not respecting the main rules of money management. The granted financial leverage therefore leads to not respecting the correct money management by the customer who will see, in a very short time, lose all his bankroll at the expense of the broker who in this case will cash the loss of the customer.
This principle also happens in traditional sport bets where the bookmaker (Bookies) collects the losses of the players (Bettors) and therefore has all the interest that the customer/bettor is a loser.