Money management is vital for trading. You ought to have a few principles to take after. Trading size ought to be chosen by your money management rules. The most popular rule is don't risk over 2% of your capital in a trade. But, it doesn't mean you can open many trades. Your aggregate risk ought not surpass 2% of your capital.
Money management is the most vital thing after analysis. If we do not manage our money properly we are going to lose everything soon . Most people do not bother about risk management and money management. They play blind.
You are very right. I think money management is a skill that should be taught to people as they grow up, it is important to everyone, not just people who trade or invest. If you trade to make a living or make money for your retired years, you also have to be very aware of how much money you need each month.
Money management is an important part of trading. The part I love the most. If a trader wants to trade successfully, he must first follow the Money Management Rules. Money management can guide investment in the right direction.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.