Trallod posted: To better last with your money you need to get rid of dreed for money most of the traders develop greed the moment they make a significant amount on their first few days trading forex and son they keep on trading recklessly with the hope that they will make a lot of cash.
Yes, also many traders come into forex greedy to begin with, not being aware how important it is to know how much risk they can afford to take.
Fear is really very constraining and does not provide an opportunity to make and the right decision, and the sooner we learn to cope with it, the easier it will be when new to trade.
A proper money management will surely benefit the trader. You should know where and how to spend your capital and take care of your funds. Money management and risk management are really important in trading.
Money Management basically covers everything about trading, Good Money Management means you are profitable trader. For 20 years, good money management is while I get increasing funds with my firm to trade, Just learn the basics of taken loss when you are wrong, and you will be good at making good profits,and don't give out profits you already made back to the market, meaning if you made $5 and you take a risk of $1from it, if you lose that $1, and take a risk with another and lose again, making $3 left, just retire for the day with you profits of $3, and plan ahead patiently for the next day trades.
That is my own secret of developing a good money management, now i do it like a machine as with my years of experienced I have improved greatly and keepi mproving daily. This year, I went like 23 week in a stretch without losing a single trade in a day in my firm account, this is because I keep and want to make sure I turn perfect in it, but no one can ever be perfect like not having a losing trade, but containing it to be very small compare to your huge profits is always the point here.
But do not forget, without patient, you can't achieve this, all profitable traders are patient traders and that is a fact.
If you are lucky to be with me each day of trading, you will get bored wanting to see how I trade, but while you are getting bored, I'm patiently waiting to take the right BUY/SELL positions, and that is best way for me to keep up with profits, all experienced traders knows this. Hope this helps.
Before using leverage it is more important to ensure how to manage risk , because leverage contains huge risk for all time. they should trade in low leverage in micro account for avoiding loss, otherwise they can fall a great trouble when market moves at random.
jimmyneeesham posted: A proper money management will surely benefit the trader. You should know where and how to spend your capital and take care of your funds. Money management and risk management are really important in trading.
I agree, these are both essential, neither of them can make you successful without the other.
sometimes you can feel only knowledge can help you when trading , on the other hand it seems despite of having good knowledge success will not come if you dont a support from a trading platform , because they can affects the result of your trading at any time.
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.
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