Many people believe that most day traders lose money and only a few are profitable. While this view has some merit, the difference between successful day traders and unsuccessful day traders often has its roots in money management technique. In referring to money management, I want to make it clear that I am talking about money management as it relates to your futures account balance and not how you pay your household bills or manage your credit score.

One skill that is universally prevalent in unsuccessful traders is inferior money management skills. And for the record, I will state that discussing money management is very unpopular among traders; it is generally assumed, for unknown reasons, that traders understand proper money management as it relates to trading. Nothing could be farther from the truth, especially for a trader with a smaller account.

Easy ways of Managing your Personal Finance.

First, you need to separate your income from your expenditure.

Income would include salary and any regular inflows from investments while expenditure covers all monthly expenses. Expenses can be categorized into –

Rent
Utilities (electricity, telephone, cable, internet etc.)
Insurance -home, car, health
Groceries
Loan Repayment
Transportation
Miscellaneous