DESCRIPTION One of the recipes of success, is to control ones risk and utilize proper moneymanagement. The definition of money management is notperfectly clear and according to trading coach Van K. Tharp, it isnot risk control per se, diversification' or how one makestrading decisions as sometimes stated (Tharp, 1998). Risk controland maximization of profits is rather a result of implementingmoney management strategies. Tharp emphasizes that moneymanagement or position-sizing (this term will be used in thefollowing) answers the question: How much? Or How many?(Tharp, 1997).
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