Any Difference ?

what you think guys any difference there is between risk and money management ?

I guess Risk management includes money management, trade management and trading knowledge.

In my opinion lack of knowledge can also cause a big risk in your trading.

imo. risk is the % of funds you can lose in case of failure, can also be expressed in probability as a profit / loss ratio.
money management is the list of rules you take to manage your trading, inclufing risk, rules of investing, market entry and exit rules...

Imamul posted:
what you think guys any difference there is between risk and money management ?

Risk management includes money management, application of profitable strategies, reduction of exposure to markets, properly sizes units (lot sizes), etc...

Risk management should be the #1 priority above all else.

The motto is the same; capital security. But the application is unlikely.

Everyone knows that forex is very unpredictable and losses can occur anytime. So what you do to reduce/mitigate these losses is risk management. Money management, on the other hand, is how skillfully a person is putting his funds into trading so that he is able to earn the highest out of those. That’s the best I could explain for these two. Hope it helps.

Johny_tr posted:
Everyone knows that forex is very unpredictable and losses can occur anytime. So what you do to reduce/mitigate these losses is risk management. Money management, on the other hand, is how skillfully a person is putting his funds into trading so that he is able to earn the highest out of those. That’s the best I could explain for these two. Hope it helps.

Nice to see your awareness on money management plan; by the way, what’s your risk reward ratio?

AniLorak posted:
The motto is the same; capital security. But the application is unlikely.

The reason people blow their accounts and lose all their investment capital is because they are greedy and try to get rich quick and allow their emotions to guide their trading.

Ultimately anytime someone blows their account, it's 100% absolutely the traders fault because they didn't use proper risk management.

Johny_tr posted:
Everyone knows that forex is very unpredictable and losses can occur anytime. So what you do to reduce/mitigate these losses is risk management. Money management, on the other hand, is how skillfully a person is putting his funds into trading so that he is able to earn the highest out of those. That’s the best I could explain for these two. Hope it helps.

Money Management is a part of Risk Management.

Risk management should be the #1 priority at all times.

Risk management: When using different baskets to carry your eggs.
Money management: When all the capacity of each basket is used up.

It minimizes losses in the case of a basket falling, but you take advantage of all the transport possibilities.

Although there may be technical differences the terms are often used interchangeably in the Forex world

birthtamper posted:
Although there may be technical differences the terms are often used interchangeably in the Forex world

True; but the purpose is same; it’s all about our balance protraction!

birthtamper posted:
Although there may be technical differences the terms are often used interchangeably in the Forex world

Agreed, technically they are distinct no doubt, but then their end motive is more or less similar only.

I just believe that they go together. Without proper risk and money management you can’t do good in fx trading. One is incomplete without the other. So take both together.

Earning money is the guiding force in both, but how you earn, that is what is different in both the markets.

You need to have both, without question.