Money management is crucial in Forex Trading

andy003

Master Trader
Jan 7, 2009
252
1
47
Put two rookie traders in front of the screen, provide them with your best high-probability set-up, and for good measure, have each one take the opposite side of the trade. More than likely, both will wind up losing money. However, if you take two pros and have they trade in the opposite direction of each other, quite frequently both traders will wind up making money - despite the seeming contradiction of the premise. What's the difference? What is the most important factor separating the seasoned traders from the amateurs? The answer is money management.
 

manofasia

Active Trader
Jun 20, 2009
17
0
32
Yes i agree with your opinion..Firstly when become a forex trader the important things is money management. If we dont follow, our profit and capital will be lost
 

ContraTrader

Active Trader
Jun 22, 2009
10
1
37
www.trade-profit.com
Money Management is not as important. Simply risk constant percent of equity on a single trade and you'll be just fine.

If you have a good trading system, the simplest money management will suffice.
 

MechXTrader

Master Trader
Jun 23, 2009
35
0
62
www.indicatorforex.com
I partially agree.
Money management is a subject when most traders fail, but with very simple rules you can have the best money management there is. The hard thing is the Self Disciplined required, for following the rules.
 

daniellefr

Active Trader
Jul 2, 2009
54
0
37
Good point. Money management should definitely be included in every trader's tasks.

I never risk more than 3%. I have seen what 10% risk can do to a trader - an aweful picture! Whoever is aiming for 300% profit or something might win in a short term (if lucky enough!), but in a long run will most probably crash and lose all the money.
 

forexboy

Active Trader
Good point. Money management should definitely be included in every trader's tasks.

I never risk more than 3%. I have seen what 10% risk can do to a trader - an aweful picture! Whoever is aiming for 300% profit or something might win in a short term (if lucky enough!), but in a long run will most probably crash and lose all the money.
How about 1%? is this small enough?
 

Adam Jackson

Trader
Jun 15, 2019
68
1
9
25
When thinking about which is the best Forex broker, a fast call can give you a thought of the sort of customer administration that they give, the holdup times, and furthermore the representative's capacity of addressing inquiries regarding spreads, regulations, leverage, and friends subtleties succinctly. Those subtleties incorporate to what extent they have been an FX broker and the real size of their exchange volume. As you understand, bigger brokers primarily approach better execution and prices.
 

Ary Barroso

Active Trader
Jul 9, 2017
908
61
39
32
When thinking about which is the best Forex broker, a fast call can give you a thought of the sort of customer administration that they give, the holdup times, and furthermore the representative's capacity of addressing inquiries regarding spreads, regulations, leverage, and friends subtleties succinctly. Those subtleties incorporate to what extent they have been an FX broker and the real size of their exchange volume. As you understand, bigger brokers primarily approach better execution and prices.
I think; popular Forex forums & review sites can play very important role in this case! Because; new traders are unable to know the difference between good broker and the market maker!
 

Baazex

Trader
Oct 28, 2019
53
1
14
21
Keeping your money in order is an important, basic money management skill everyone should develop and to manage your money keep a track of your goals its really important to create your financial goals . Making progress toward these goes will prove to you that you are being successful at managing your money.
 

trader_67

Newbie
Oct 8, 2019
23
5
4
49
Keeping your money in order is an important, basic money management skill everyone should develop and to manage your money keep a track of your goals its really important to create your financial goals . Making progress toward these goes will prove to you that you are being successful at managing your money.
That’s right, management plus money and risk management go hand in hand. So if money is not managed accurately, your journey is going to be even riskier, more prone to losses.
 

Mofyn

Trader
Nov 4, 2019
7
0
7
38
As has been said many times before, money management is a critical aspect of trading, which determines the difference between winners and losers. Experience shows that if 100 traders trade, then only a few traders will be in the plus at the end of the year. Most traders will suffer losses, even though they are likely to win, due to poor money management. Money management is the most essential part of any trading system. Unfortunately, most traders don't understand how important it is. It is important to understand the concept of money management and understand the difference between this and trading solutions. Money management is the determination of the amount of money you're going to invest in one transaction and the risk that you're going to take in this order.