Category: Trading Money Management: The “Offense”

Risk Management is your defense. Money Management is your offense. This is how you go from “not losing” to “winning big.” It’s how you really grow your account.

If “Risk Management” is about surviving, Money Management is about thriving. It’s the set of “offensive” rules that maximize your winners and compound your growth. This is where you put the “pedal to the metal” after you’ve proven you have a winning edge.

This isn’t about “risking more.” It’s about being smarter with your profits.

Key Money Management concepts:

Scaling In: You’ve entered a trade, and it’s a clear winner. It’s moving strongly in your favor and has just broken a new level. Instead of just holding, you add to your position, moving your overall stop-loss up to breakeven. You are now “pyramiding” your profits and compounding your gains on a proven winner.

Taking Partials: This is the opposite of “scaling in” and is great for psychology. You’ve hit your first profit target (e.g., a “1-to-2” Risk/Reward). You sell half your position, move your stop-loss to your entry price, and let the “house money” ride. You’ve locked in a win, and the rest of the trade is now 100% risk-free.

The “Scaling” or “2% Rule”: After you’ve been profitable for 3 straight months, you earn the right to “level up.” You can increase your risk from 1% to 1.5% or 2% per trade. This rule ensures that you only risk more after you’ve proven you are consistent.

The Nikvest Edge is our “Blueprint Evolver” (Idea #2 from our earlier chat, implied here). Our AI doesn’t just give you a static plan. It evolves with you. After it tracks 100 “flawlessly executed” trades (Tip 9), it will proactively suggest a “Money Management” upgrade, like: “Your win-rate is 60% on EUR/USD. You are now cleared to test a ‘Partial Profit’ strategy to boost your psychology.” It’s an AI coach that helps you build your offense, one step at a time.