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Money Management
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Frankringer

Member Since Oct 07, 2019  2 posts Frankringer Oct 07 2019 at 06:32
Nice information.

fancydandy

Member Since Oct 09, 2019  23 posts fancydandy Oct 09 2019 at 12:06
It is one of the techniques that each and every trader should focus and nurture it.

AmDiab

Member Since Apr 18, 2017  624 posts AmDiab Oct 09 2019 at 16:14
aa33030 posted:
Merrill posted:
You probably are using money management but do not have explicit calculations


Money management involves calculations, being able to calculate using the correct lot sizes for the account balance with a set leverage


Even it’s a very much important calculation; usually I don’t take more than 2% risk; that’s my general rule!

Roberto21

Member Since May 02, 2019  185 posts Roberto21 Oct 12 2019 at 17:21
Actually how much we can earn our trading it depends on the markets movements. It’s not countable at all by our trading accounts. I was profitable when I started my live trading with 1K. but I did huge loss when I increased my balance in 2.5K but there was same strategies with same money management.

ratou11

Member Since Dec 10, 2018  28 posts Timothe Bouchard (ratou11) Oct 14 2019 at 15:51
Money management is KEY to almost everything in Forex. And it's a constant learning curve. I've been working on my own money management skills for years and still learn every day.

Professional4X

Member Since Jan 05, 2016  1189 posts Professional4X Oct 15 2019 at 20:15
ForexAngell posted:
Anayallador posted:
I do not always use money management. I can change the number of transactions or the amount of money. I am a very gambler.
I noticed that I am losing less money over time. I hope that this is my merit and in the future I will be able to live without money management.


Please, explain what do you mean 'without money management'? All that you analyse about your past and future trades that is your money management.


Simply analyzing past and future trades is NOT money management. That is trade analysis.

Money management is determining the risk level of your financial exposure and attempting to minimize that risk, by properly keeping your exposure of the available investment capital at the lowest levels available, while still generating a profit when possible.

This is done typically by using smaller lot trade size, counter coverage trades, and properly calculated SL + TP levels.

The reason people lose in forex and other investment instruments is because they do not use proper risk management. ANYONE who says they don't trade with proper risk management, is putting their entire account at risk and any advice from that person should be ignored.

Risk management (money management) is the most important rule.

If it looks too good to be true, it's probably a scam! Let the buyer beware.
Mohammadi

Member Since Aug 11, 2017  664 posts Mohammadi Oct 23 2019 at 03:39
money management is very good skill which always supportive to avoid risk , but it for all time cannot protect you , becasue market is unpredictable most of the time.

Jumo

Member Since Jul 24, 2019  20 posts Andy Peters (Jumo) Oct 23 2019 at 08:32
Mohammadi posted:
money management is very good skill which always supportive to avoid risk , but it for all time cannot protect you , becasue market is unpredictable most of the time.

any strategy and management cannot protect you totally. Not only on forex, everywhere and in any business. Money management is a reducing the risk by properly investing / money usage.

Professional4X

Member Since Jan 05, 2016  1189 posts Professional4X Oct 23 2019 at 20:02
Mohammadi posted:
money management is very good skill which always supportive to avoid risk , but it for all time cannot protect you , becasue market is unpredictable most of the time.


It is true that the market is unpredictable, but you can control your maximum acceptable level of risk.

For example, If the market spikes against your trade -1000 pips, this risk could easily be avoided and controlled by using a reasonable stoploss, counter coverage trades, and other similar techniques.

Any time an account gets wiped out, it is absolutely the fault of the investor because they didn't properly manage the risk to their investments. The event that cause the loss of funds is irrelevant, the fact that the account is blown should tell you all you need to know. Blown accounts = lack of properly used risk management.


If it looks too good to be true, it's probably a scam! Let the buyer beware.
Adribaasmet

Member Since Aug 27, 2017  759 posts Adribaasmet Oct 26 2019 at 15:05
Professional4X posted:
Mohammadi posted:
money management is very good skill which always supportive to avoid risk , but it for all time cannot protect you , becasue market is unpredictable most of the time.


It is true that the market is unpredictable, but you can control your maximum acceptable level of risk.

For example, If the market spikes against your trade -1000 pips, this risk could easily be avoided and controlled by using a reasonable stoploss, counter coverage trades, and other similar techniques.

Any time an account gets wiped out, it is absolutely the fault of the investor because they didn't properly manage the risk to their investments. The event that cause the loss of funds is irrelevant, the fact that the account is blown should tell you all you need to know. Blown accounts = lack of properly used risk management.



Well said! This is why, I use stop loss trading tool according to my own research! On the other hand, I don’t take more than 2% risk on per trade position!

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