Money Management Tips

Money management is essential in trading. It is easy to lose money in trading.

It is good to know your risk before opening each trade, and also use a forex manager to help you manage your positions, set TS and other functions, I have been using it since yesterday.

If you do not know how much you are risking when you enter a trade then you will never be successful

You just need to learn how to evaluate important points and prioritize.

i have a very common and boning question as like others , there is any major difference between money and risk management ? its all about same issue or any major difference between two ?

Tradelist45 posted:
i have a very common and boning question as like others , there is any major difference between money and risk management ? its all about same issue or any major difference between two ?

Money management is included in early trading preparation before making a deposit trader need to watching the amount saving money, don't use all saving money in forex but only spent money that affords to lose, money management in trading included how to chose position size, meanwhile, risk management is preparation about the risk, usually trader using stop loss to manage the risk.

The best money management strategy is to stop trading immediately. That is the only way to minimize losses. Almost everyone loses at Forex

sopranoberidze posted:
The best money management strategy is to stop trading immediately. That is the only way to minimize losses. Almost everyone loses at Forex

Thats not the fact. People loose because they do not trade sensibly and just jump to conclusions without prior analysis.

managing money and risk its all about avoiding unfortunate risk and losses , so we the traders always have to follow our money management , if we want to lead a healthy trading life.

Money management is one of the keys to mitigate risk. I would recommend no overtrading but always planned trading. I have been successful this way.

- Several stages of market analysis
- Calculation of probable risks
- Calculation of market entry parameters based on analysis and possible risk
- News monitoring
- Probable exit points calculation and selection of the most profitable scenarios

MarcellusLux posted:
- Several stages of market analysis
- Calculation of probable risks
- Calculation of market entry parameters based on analysis and possible risk
- News monitoring
- Probable exit points calculation and selection of the most profitable scenarios

Those are great points. Could you be more specific on how you quantify these risks? and use them for actual trades

CatWalker posted:

MarcellusLux posted:
- Several stages of market analysis
- Calculation of probable risks
- Calculation of market entry parameters based on analysis and possible risk
- News monitoring
- Probable exit points calculation and selection of the most profitable scenarios

Those are great points. Could you be more specific on how you quantify these risks? and use them for actual trades

or just trade news =)

Money management is very very important, and so it risk management. They need to go hand in hand. You also need to have some proper knowledge of the market. Money management will be based on a plan that you have, and as you said every trader will have his ir her own plan, such as not exceeding 2% of your capital in any trade.

What is difference between money management and risk management?

CakeMoss posted:
What is difference between money management and risk management?

I think their is no difference.

CatWalker posted:

MarcellusLux posted:
- Several stages of market analysis
- Calculation of probable risks
- Calculation of market entry parameters based on analysis and possible risk
- News monitoring
- Probable exit points calculation and selection of the most profitable scenarios

Those are great points. Could you be more specific on how you quantify these risks? and use them for actual trades

The risk analysis is based on technical and fundamental analysis of the current market situation. At the same time, I take into account market volatility, the impact of possible historical levels and the psychology of market participants (investor sentiment). This allows me to get data on the current market position and assess the future prospects for the development of different scenarios. The start position of gain/loss I try to adhere to is 3/1

@CakeMoss Money management tells you how much money you should should to open a trade. Risk management tells you how you can manage your risk in trading.

Its quite similar risk management helps your money management.