I am learning quite a bit about trading reading Elite Trader. However, many posters on many threads seem to feel there might be a Magic Money Management Formula that will make them winners. Since this is an area I know a little about, I will hazard an explanation regarding this topic. MONEY MANAGEMENT alone will not make one a winner in the long run. A trader (or gambler) can not win in the long run without a "POSITIVE EXPECTATION" on his trades or bets. RISK MANAGEMENT will help make a trading account grow and protect the account from temporary adversity IF the trader has a winning methodology for entering and exiting. Over-betting a bankroll often leads to ruin. Always doing this always leads to ruin A casino guarantees themselves a "positive expectation" on the bets they make (take) by paying "less than is mathematically breakeven". Example: Even money on red when playing Roulette even though the gambler has about a 48% chance of winning this bet. A casino manages its' money by not taking on too much short term risk. Example: Caesar's Palace would never let Bill Gates bet $2,000,000 a spin on Roulette because in the short run he could get lucky and bankrupt the casino. Caesar's would gladly let a player bet $100,000 (or more) a spin as the casino can survive streaks of "bad Luck" for these amounts. In the casino, players with Money Management Systems (usually progressions) are treated like kings and never bared from playing! There are many names for one key concept: Positive Expectation,The Edge, Overlay, The Best Of It, Getting paid more than is fair, Positive Risk/ Reward, etc. Whatever a trader, gambler or casino call this concept.. they all must abide by it to be winners.