Actually without proper money management even the best strategy would yield poor result. Money management begins with determining the lot size or allocation of capital to a trade. This is followed by assessment of risk to reward ratio and usage of stop loss and take profit facility. Unless and otherwise a trader is adept in all the criteria mentioned above, it would be very difficult to come out successfully in the long term. Very few traders are exceptional in money management and so they perform exceedingly well than others even when similar trading strategy is used.
If you have a really good strategy - you would already include the stop loss and take profit facilities. 90% of those actual good strategies include those components. Again I think that money management is important, but consider the trading strategy to be the starting priority.
There is nobody who is able to reduce loss completely from this volatile trading place, but taking some major steps it can be reduced sometimes. If we can manage our risk when trading practically then it is possible to reduce loss form before. So, we have to emphasis on risk management policy besides acquiring good trading knowledge.
The main issue in Forex is to keep survive continue. And for surviving in a proper way we the traders first of all have to make sure real exclusive educational facilities that are very supportive to be a knowledgeable trader rapidly. we can choose the broker which always ensures best trading environment for acquiring proper trading knowledge by providing exclusive educational facilities.
mlawson71 posted: Do you have any tips and advice about good money management?
Money Management is a strategy that may decide the trader’s longevity. Even if somebody is a good trader but poor management will result chaos in his trading. Money management is all about risk management and leverage. A person with 70% win rate,poor money management on the 20% can wipe out whereas 60% win rate is still better with sound money management plan. You can avoid revenge trading and high risk trades. Although risk is inevitable but don’t risk more than you can’t afford.