brotendo posted: MM is the most important skill to trade Forex. Or even life. if you don't possess one - you are in trouble. best strategy can fall down if you don't know to get use of your funds. so i would recomend before going all in on your live account - good MM and learn it. then practice. and then you will succeed
Well said. Many new traders don't understand the importance of MM and end up blowing their accounts. But Mm is really important and traders must make a necessary plan of action to avoid risk and manage money.
Patrick1981 posted: I don't believe that. If you have a great strategy that makes profit then it doesn't really matter what money management you use
Well well any trading strategy implies the presence of money management. Otherwise this is not a strategy. How will you trade without risk? How will you calculate which% are you ready to lose if something happens? In my opinion you said stupidity. Or you have not been traded yet, so you do not understand what you are talking about. 🙄
shirtgeek posted: MM is important for keeping you in the game but no amount of MM will get you winning the game. For that you need to know HOW to trade and WHEN to trade. MM is just part of the picture
All are equally important things as per me. Even if a person knows how and when to trade, his profits won't stay up with him if he doesn't manage his money well. So yes I think all three have equal weightage.
psycology is more important than money management.
i do win and i win big. i dont accept mediocre winnings. but i want to win more since i know it can be done.
i am trying something new on demo. i will try it for a few months and see if it can outperform my live account. now it is the 2nd week of testing and the demo is +30% of my live.
the difficult part on demo is the psycology cause the risk is big (10% per trade trading). 2-3 trades per week, perfect setups only, nothing less than that if it works out i will put a small ammount of money like 5k and test it live.
for now i can not do it live, i do know it can work cause i am practically taking the same trades but i will not be able to handle the pressure if i start with 1-2 loosers
Adribaasmet posted: , I have a fixed risk reward ratio in my trading! Right now I am trading with 2% risk reward ratio, yes I am comfortable with low risk reward ratio because it secures more my trading capital
I like this idea, especially if your capital is big enough so 2% is more than enough for you.
Money Management is a crucial element of trading the financial markets especially in times of volatility. I never risk over 2% per trade. I write down a post about money management in https://tfltrader.com/quan-ly-von-trong-forex/ but it is Vietnamese. If you want to read it, please google translate in to English.
'It is not easy to manage money. But this is a very important part of becoming an independent adult. Also, it is important in trading, so that traders can examine that how much money he can invest while trading . Money management can also be referred as investment management. In conjunction with money management person should also have risk management skills as money is associated to risk.'
Many traders could not succeed, even though seemingly effective strategies were used. The main reason why exactly 90% of investors are not successful is how Money Management - Money Management - rules of money management.
Izan45_ posted: Many traders could not succeed, even though seemingly effective strategies were used. The main reason why exactly 90% of investors are not successful is how Money Management - Money Management - rules of money management.
True even the best of the best strategies fail if money management is not taken care of, after all its all about one's funds at the end.