Effective money management is a crucial aspect of successful trading. Adhering to sound money management rules can help you protect your capital, limit losses, and ensure sustainable long-term profitability. Here are some key money management trading rules to follow:

1. **Risk-Reward Ratio**:

- Always assess the potential risk and reward of a trade before entering it. Aim for a favorable risk-reward ratio, where the potential reward is significantly higher than the risk. A common ratio is 2:1 (reward:risk), meaning you stand to gain twice as much as you risk losing.

2. **Position Sizing**:

- Determine the size of your positions based on your account size and the risk per trade. A general guideline is to risk no more than 1-2% of your total trading capital on a single trade. Position size should be adjusted to accommodate the stop-loss distance and your risk tolerance.

3. **Stop-Loss Orders**:

- Always set a stop-loss order for every trade to limit potential losses. The stop-loss should be placed at a level where you are willing to accept that the trade has failed. It should be based on technical analysis and risk tolerance.

4. **Take-Profit Orders**:

- Set take-profit orders to lock in profits when the market moves in your favor. A clear profit target helps prevent emotional decision-making and ensures that you capture gains at a predetermined level.

5. **Trailing Stops**:

- Consider using trailing stops as the trade progresses. These orders automatically adjust to the changing market price, locking in profits while allowing potential gains to run.

6. **Diversification**:

- Avoid putting all your capital into a single trade or asset. Diversify your portfolio to spread risk across different instruments or markets. This helps protect your capital in case one trade goes against you.

7. **Risk Management**:

- Develop a clear risk management strategy that includes rules for maximum allowable drawdown and guidelines for when to reduce position size in volatile markets.