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Money Management Systems.
TRezin

Member Since Aug 03, 2018  3 posts TRezin Oct 14 at 15:18
All,

Do any of you know where to find different money management methods/systems for trading accounts. Have looked in the search in the community but can't seem to find anything.

Thanks
TRez

AliaDare

Member Since Jul 19, 2020  115 posts AliaDare Oct 15 at 00:38
Money management is the backbone of trading. By money management, I mean to include every trade in the plan. No more than a 2% risk can be taken for each trade. If your balance is 1000, then you can trade at 10 cents, which means 1 cent for every 100. If the profit is like 20 pips, you have to bring stop loss at the entry point.

Dictiony

Member Since Apr 01, 2020  125 posts Dictiony Oct 15 at 01:30
You can learn about money management systems by watching different videos available on youtube.

TRezin

Member Since Aug 03, 2018  3 posts TRezin Oct 15 at 09:22
Thanks for the info on the risk level. I was wondering more about an equity strategy to control losses/drawdowns.

Aqissiaq

Member Since Jul 23, 2019  11 posts Aqissiaq Oct 15 at 10:46
I think it is best to stick to the 1-2% suggested by @AliaDare but to manually calculate everything. This will give you a much better feel and understanding of the risk and what it means

TRezin

Member Since Aug 03, 2018  3 posts TRezin Oct 15 at 15:32
Hi Aqissiaq & AliaDare and thanks again for the feedback.

I think you are only thinking of the trading side of things that I fully understand after trading for a number of years. However, what I am asking is more about how to manage your account system. For example adding in a system that stops you trading after you hit 50% of your previous days losses or reducing your trading risk after 1, 2 or 3 losing trades.

This is a big part in forex trading and is what moved me forward from a break even trader in forex. What I am trying to find out is what other methods or systems are people using in this area.

Thanks

UweMoench

Member Since Jul 19, 2020  115 posts UweMoench Oct 18 at 13:41
Money management is very important for trading. Don't risk more than 2% in a trade. Also I prefer not to open multiple trades at a time. If you open two trades at a time it would be 4% which is not good. Survival in the market is the first skill we should achieve.

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