Money management in trading involves implementing strategies to protect your capital and ensure sustainable growth. Key practices include determining and sticking to a risk tolerance, typically limiting loss per trade to a small percentage of your account (usually 1-2%). Effective position sizing is crucial, as it involves calculating the amount to invest in each trade based on your account size and risk level. Setting a favorable risk-reward ratio (often aiming for at least 1:2) is essential to ensure potential rewards outweigh risks. Additionally, maintaining a diversified portfolio and keeping a trading journal can help track performance, analyze outcomes, and improve strategy over time. Overall, disciplined money management helps traders navigate market volatility and increases the likelihood of long-term success.