Money Management

Samuel23

Banned
Apr 20, 2012
171
1
0
We have to learn about MONEY MANAGEMENT if we are trading Forex. This is very important for us as we can only benefit from it.

Money management teaches us how to manage losses, and how to maximize profits. It all commands us to cultivate a responsible and disciplined attitude to trading by acquiring consistency in our habits. We are taught not to be erratic in trade sizes, to be consistent about the entry of stop loss or take profit orders, and above all, to regard loss as a natural, and indeed, inseparable part of a trading career. There are many ways of managing loss, but there is no way of avoiding it altogether in a trading career.
 

triplet

Active Trader
Oct 7, 2014
101
4
27
I quite agree with you money management is very important due to high risk in forex every trader need to inculcate how to manage money in forex.
 

chief

Confirmed Tickmill Representative
Oct 27, 2014
217
7
37
management risk consist two important thing.
first profit management and second one is losing management. most trader too much put attention with calculate risk and only resulted with what lot size will used.
 

ramizjilani

Trader
Oct 6, 2014
11
0
22
India
Forex trading and money management go hand in hand. One cannot do without another. It is therefore very important to learn about money management. Some people hire experts to do money management for themselves if they are to do Forex Trading.
 

Aliraza142

Newbie
Nov 29, 2014
1
0
2
Forex provides many opportunities to actually make money. There are over a hundred currency pairs to choose from. Traders can also make money via affiliate programs without even trading. Forex is the best thing that has ever happened to my financial life.
 

Steve Lock

Master Trader
Feb 28, 2015
202
1
52
Yeah, that's right. You can't be successful without money managment. I use strickt stop loss orders and close positions when I get expected profit and losses.
 

fxapex

Active Trader
Jun 7, 2013
258
13
29
Yes most of the time the new traders tend to forget about money management , a proper management will help you in taking quick decision while trading.
 

David M

Confirmed IronFX Representative
Apr 20, 2015
23
0
2
Money management is key in the success of a trader. You need to know how much to trade without compromising too much of your equity. You need to know when to close a trade, you need to understand how to manage your money. This is the reason so many companies are called money managers. In case traders don't have good money management they can always chose a professional company to do it for them. Im currently looking at a Portfolio management option with ironfx and it is the same thing. It is a money management program as I will be investing and they will be managing my account. If you don't have good money management skills then get the pros to do this for you.
 
Traders who risk too much on a trade are gamblers, and gamblers typically lose money, just like most traders do. The best thing to do is to never risk more money than you are emotionally OK with losing per trade. Perhaps the best way to judge if you are OK with losing an amount on a trade is to gauge how much you think about it, if you find that you are thinking about a trade all the time or if you’re up all night thinking about and watching your trades and not sleeping, you have clearly risked too much. You should be totally OK with the amount you’ve risked per trade, and that means that you basically forget about the trade after you enter it because the amount you’ve risked is not significant enough to cause you to become emotional.
 

july

Trader
Jul 22, 2015
8
0
7
Germany
Money management in Forex trading is one of the most important problems of new and even advanced forex traders. Almost everybody can find a good trading system that can be profitable but something that causes traders to lose and be negative at the end of the month, is lack of a proper money management strategy and discipline.