⚡Fixed Fractional Vs. Fixed Lot Money Management

A tried and tested approach is the concept of money management which can be the game-changer in helping you get to your trading goals.

#squareoffthreads🧵👇

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Why money management is important?

Losses is a part and parcel of trading. The trick here is to be able to limit your losses and find the appropriate money managing strategies to suit a situation.

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Money management not a guarantee of sure fire success and high profits but is an assurance against mounting losses in a difficult market. At the same time you need to keep an eye on the volatility of the stock and how much money needs to be put at risk on any one position

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What Is the Fixed Fractional Model?

Fixed fractional or fixed risk is a money management strategy where the risk is restricted to a fixed percentage of the account. Only a fixed part or percentage of the account capital gets exposed to risk.

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Pros Of the Fixed Fractional Model

The ability of this model to capitalize earnings is borne by the compounding effect. In winning streaks the position size begins to increase. But in losing streaks the size of the trades reduces.

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Cons Of the Fixed Fractional Model

This model is mostly suitable for larger accounts.

With the low risk percentage it does not leave much room for making a bigger move with smaller lot sizes. With small capital it will take much longer time to grow account.

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What Is Fixed Lot or Fixed Ratio Money Management?

This is a money management technique that helps compound returns with an increase in the lot size when the account sees growth. This is widely practiced models where a trader sets the lot numbers to trade per position.

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Pros Of the Fixed Lot Model

This is best suitable for smaller accounts to grow account faster.

The fixed lot model is fairly straightforward and even novice traders can grasp it easily. It is also relatively easy to manage unlike some of the more complex alternatives.

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Cons Of the Fixed Lot Model

The periodic withdrawals from the account reduce the potential to use the additional capital to have a healthy capital and build on incremental profits. With larger accounts the position size can become unwieldy and open to higher risks.

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More from All

Margatha Natarajar murthi - Uthirakosamangai temple near Ramanathapuram,TN
#ArudraDarisanam
Unique Natarajar made of emerlad is abt 6 feet tall.
It is always covered with sandal paste.Only on Thriuvadhirai Star in month Margazhi-Nataraja can be worshipped without sandal paste.


After removing the sandal paste,day long rituals & various abhishekam will be
https://t.co/e1Ye8DrNWb day Maragatha Nataraja sannandhi will be closed after anointing the murthi with fresh sandal paste.Maragatha Natarajar is covered with sandal paste throughout the year


as Emerald has scientific property of its molecules getting disturbed when exposed to light/water/sound.This is an ancient Shiva temple considered to be 3000 years old -believed to be where Bhagwan Shiva gave Veda gyaana to Parvati Devi.This temple has some stunning sculptures.

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1

From today, we will memorize the names of 27 Nakshatras in Vedic Jyotish to never forget in life.

I will write 4 names. Repeat them in SAME sequence twice in morning, noon, evening. Each day, revise new names + recall all previously learnt names.

Pls RT if you are in.

2

Today's Nakshatras are:-

1. Ashwini - अश्विनी

2. Bharani - भरणी

3. Krittika - कृत्तिका

4. Rohini - रोहिणी

Ashwini - अश्विनी is the FIRST Nakshatra.

Repeat these names TWICE now, tomorrow morning, noon and evening. Like this tweet if you have revised 8 times as told.

3

Today's Nakshatras are:-

5. Mrigashira - मृगशिरा

6. Ardra - आर्द्रा

7. Punarvasu - पुनर्वसु

8. Pushya - पुष्य

First recall previously learnt Nakshatras twice. Then recite these TWICE now, tomorrow morning, noon & evening in SAME order. Like this tweet only after doing so.

4

Today's Nakshatras are:-

9. Ashlesha - अश्लेषा

10. Magha - मघा

11. Purvaphalguni - पूर्वाफाल्गुनी

12. Uttaraphalguni - उत्तराफाल्गुनी

Purva means that comes before (P se Purva, P se pehele), and Uttara comes later.

Read next tweet too.

5

Purva, Uttara prefixes come in other Nakshatras too. Purva= pehele wala. Remember.

First recall previously learnt 8 Nakshatras twice. Then recite those in Tweet #4 TWICE now, tomorrow morning, noon & evening in SAME order. Like this tweet if you have read Tweets #4 & 5, both.