RE: Not a Meme
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Money management is also an important thing to learn in trading. Successful traders don't put more than 1% of their cash into a trade.
What this does is that it allows you to lose on several trades without wiping you out. And when you win, and win big, it wipes out your losses. The thinking is that the longer you are trading, the better chances of having wins. By not wiping out your cash, you stay in the game longer. If you start with bigger positions, it doesn't take too many losses to put a stop to your trades.
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That's actually brilliant. So it's like spreading the risk but retaining powder for more moves
Right. It's something poker players do as well. They know they're going to lose several hands. By limiting losses, they stay in the game longer, with no limits on winning. I'm sure you can find YouTube videos on the topic.