Despite the fact that most traders are fully aware of it, it is a curious notion that many traders seem to ignore money management all together or pay very little attention to it. The fact that most traders lose money in the markets is not really surprising if you consider that most of them also have no money management plans and mostly ignore the fact that they can lose money on any trade they will enter.
Forex money management
- Thread starter Rambo35
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To me, trading is not that something easy to learn and to mastered neither by using 3 days or 3 months. But indeed Money Management is much much more difficult to master due to humanity born nature to be greed and think they are always in the right way. They only dream about some easy money, but they forget they should first to protect their own assets before earning more assets. A lot of systems even with those free all over the internet works, but it must be included with own Risk and Money Management in my point of view.
Managing
There is a well known big stakes sports better in Las Vegas who was questioned recently by some friends at a social gathering.He was asked what percentage of his bets he won.His response of " about 54%" astounded the questioner and the others in the group. He was further questioned " How can you survive winning only 54% of your bets ??" His answer is apropos to the title of this thread--" I can make a good living on 54% because I manage my money carefully". What that meant exactly he declined to say, but I'm sure it involves the same basic principles that managing money in forex trading mandates.-EB
There is a well known big stakes sports better in Las Vegas who was questioned recently by some friends at a social gathering.He was asked what percentage of his bets he won.His response of " about 54%" astounded the questioner and the others in the group. He was further questioned " How can you survive winning only 54% of your bets ??" His answer is apropos to the title of this thread--" I can make a good living on 54% because I manage my money carefully". What that meant exactly he declined to say, but I'm sure it involves the same basic principles that managing money in forex trading mandates.-EB
Yeah...MM is very important since it helps u to improve the security of ur money, and because of that - earn more and one of the maybe not most important but still-reduce stress..
money management is step advanced from the trader as in this level you will be doing trades for many accounts and giving your technical analysis to the market which will be great to step to earn more money, actually for a money manager its important to find a platform that could help you to trade for many account at the same time, price like what vertex ebroker do.
HI. Everyone is talking about MM. But who can give any practical advice about it. How many pips i shud choose before stop loss...or smth
What I'm wondering should the moneymanagement be different if you use 1 lot instead of 10 positions of 0.1 lot (on different levels)?
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