What are the trading rules you live by? Make sure you have the edge. Know what your edge is. Have rigid risk control rules like the ones we talked about earlier. Basically, when you get down to it, to make money, you need to have an edge and employ good money management. Good money management alone isn’t going to increase your edge at all. If your system isn’t any good, you’re still going to lose money, no matter how effective your money management rules are. But if you have an approach that makes money, then money management can make the difference between success and failure.
