What does managing your money in trading primarily help to achieve?

Managing your money in trading primarily helps to avoid ruin due to capital loss by implementing risk management techniques. This involves setting appropriate position sizes, utilizing stop-loss orders, and maintaining a balanced asset allocation. Effective money management ensures that even in the event of multiple losses, a trader does not exhaust their capital to the point of being unable to participate in the market. By protecting capital, traders can sustain their trading activities over the long term and have the opportunity to recover from setbacks.

While maximizing returns on investment and enhancing trading strategies are certainly important aspects of trading, they are secondary to the foundational goal of preserving capital. A trader can have the best strategy or the highest return potential, but if they do not manage their money wisely, they risk large losses that could remove them from the market entirely. As for avoiding market volatility, it is inherent to the trading environment, and effective money management does not eliminate it; rather, it helps in mitigating its adverse effects on a trader's capital.