3 Types of Money Management – What are They and How to Use Them
Money management is a part of almost every adult’s life nowadays. Everybody needs to take control of their funds and know exactly how much they have and where they have them. This is not an article about money management for spending or anything like this. This article will focus on money management for investments and how they usually work. We will talk about 3 types that are tried and tested and can find a potential user almost instantly. The reason there are 3 is that there are usually 3 types of investors. Let’s see what each of them does.
#1 Tactical
Tactical money management is what you would call active trading. It can be called day trading, scalping, or anything of the sort. This is when the manager actively moves his funds from place to place, trying to capitalize on smal...