Hello Friends,

"Money management is like s*x. Everyone does it one way or another, but not many like to talk about it and some do it better than others. But there's a big difference: S*x sites on the Web proliferate, while sites devoted to the art and science of money management are somewhat difficult to find."

This group is about discussing how best we can manage our money to benefit most from the stock markets.

So how much thought have you given to money management recently? Or are you still too preoccupied by all kinds of indicators or CNBC fundamental buy, sell and holds to focus on the subject?

Eventually, however, you've got to ask yourself the most important question of all: "how much?" right?

Getting a straight answer to that one may be tough. There's still a lot of confusion about risk or money management from so-called gurus. I recently saw the following comment regarding money management from a "guru":

"[We] use very simple money management: Trade one contract per trading signal in the markets … with no pyramiding."

This is NOT money management. When you hear someone describe money management like this trading guru, run don't walk the other direction as you are about to be conned.

Money management answers the question of "how much?" At all times, given the risk you are taking, the money you have, and the volatility of the market -- you must know the optimal number of shares or contracts to be long or short.

In my opinion money management or position sizing or bet sizing just doesn't get the attention it deserves.

Money management keeps you in the game. Money management tells you whether you have enough new money to trade additional positions. Money management makes you all realize that you need to make small bets initially to simply stay alive.

All the very best of luck in managing your money well and extracting huge profits from the markets from tips and ideas which you get from this group.

Kapil Marwaha