Money Management

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.

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

Money management is the key to success in the trading industry! Basically, pro traders can recover their losing trade positions so quickly because they follow the terms of money management as well as risk management policies so honestly!

It depends what exactly each one understands from Money Management. If this is just management of your own capital and investments - it's fine as long as you follow your trading plan. If you mean for the Money Management of someone who trades with your money - I don't really trust these.
I think their main focus is on have more people to be subscribers and to earn from the mass. Be careful who you trust regarding your own Money Management.

Your money management skill is that which makes you remain in the market. A trader that finds it difficult to manage high capital finds himself out of the market sooner that he expects. It doesn’t come easy and the skill required in risk management is one that grows with time.

Mohammadi posted:
Your money management skill is that which makes you remain in the market. A trader that finds it difficult to manage high capital finds himself out of the market sooner that he expects. It doesn’t come easy and the skill required in risk management is one that grows with time.

It’s important! Money management is the advance level of knowledge that traders need to learn properly after basic trading! New traders should focus on technical & then the fundamental afterwards; money management and risk management!

Managing the risk is the most demandable ability in Forex market where risk is everywhere. My trading career, many times I fallen a great loss due to lack of exact risk management . now I am studying about this

The money management should be just a habit, not the rule (because the rule can be broken), not the strategy (because strategy works only for some conditions). MM should be your habit, subconsciously.

Mohammadi posted:
Your money management skill is that which makes you remain in the market. A trader that finds it difficult to manage high capital finds himself out of the market sooner that he expects. It doesn’t come easy and the skill required in risk management is one that grows with time.

Damn true! risk management is the key to stay in this business.

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.

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.

Really? Then what’s your highest risk reward ratio on per trade while you do avoid the rules of MM?

Maybe you naturally have good instinct for money management. You probably are using money management but do not have explicit calculations

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.

I guess; this guy isn’t available right now because of following unrealistic game plan on trading!

There is no one ideal way to make money on Forex and other markets, because any market is a collection of factors that directly affect the general system of these factors. It is pointless to consider money management and strategies as a separate component. It is much more important to understand how to use a trading strategy and money management in different market conditions.

AnthonyWins posted:
There is no one ideal way to make money on Forex and other markets, because any market is a collection of factors that directly affect the general system of these factors. It is pointless to consider money management and strategies as a separate component. It is much more important to understand how to use a trading strategy and money management in different market conditions.

I got yours point; really depending on any specific data is meaningless & the result is very costly!

Adribaasmet posted:

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.

I guess; this guy isn’t available right now because of following unrealistic game plan on trading!

I think that those who are serious about trading will work hard to achieve results and improve trading every day. And if a trader use trading as a game, then the profit will also be like a “toy money”.

ForexAngell posted:

Adribaasmet posted:

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.

I guess; this guy isn’t available right now because of following unrealistic game plan on trading!

I think that those who are serious about trading will work hard to achieve results and improve trading every day. And if a trader use trading as a game, then the profit will also be like a “toy money”.

A perfect example! Which traders are sinuous on trading; only they are able to make a decent return her; otherwise no way!

Money management is important, because as the balance grows, the leverage is descreased at brokers and therefore you must adjust your lot sizes to compensate for the decrease in trading leverage

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