Posts Tagged ‘money management’

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Master Money Management

Money management is the most important tool in forex trading. Also, you need patience, trading discipline, and a strategy is required. A strategy becomes useless when you do not control the risk per trade. Also, you need a stop-loss. Hence, you should write it as part of your trading plan. Here are some of the tips. Assess your personal attitude to risk: Find out a trading strategy, according […]

The Money Management Forex Traders Must Understand

In this video, you will learn about the importance of money management in forex trading. Money management is often ignored by beginners in forex trading and they end up blowing their trading account. They go on searching for a holy grail trading system and try to make money by over leveraging their trading positions. You might have spent a lot of time exploring indicators and fundamental analysis for finding trades. However, it […]

Money Management — 50% of Your Success in Forex Trading

In this video, you will learn how money management contributes to success in forex trading. Forex trading is more about money management than using a strategy. Any good strategy will prove to be useless in the long-term, if you do not follow money management rules. Try to implement discipline when it comes to following your money management rules. Do not risk more than 2% […]

The 2% Money Management Rule — Making Your First Trade

We all know that the goal of trading is to make money. So far, we have learned that as long as you have an edge in the market, you will be profitable in the long run. How do you maximize your profitability without blowing up your account? The answer lies in the 2% money management rule. Let's say you have $10,000 to bet. You are considering a particular trade with […]

Forex Money Management and Win Rate

Many traders are looking for the perfect entry. Trade management and structuring are considered secondary. A common misconception is that profitability comes with the high win rate. Let us say, Sally and Sully keep trading journals. Sally's win rate is 4 winning trades out of 5. Sully makes 1 winning trade out of 5. If we were to believe the common knowledge, we would say, […]

Money Management: Protecting Your Capital

In this video, you will learn what money management is and how much you should risk on a single trade, and the concept of the risk to reward ratio. Money management also known as risk management, allows you to deal with losing trades by limiting the money you might lose on trades relative to your trading account. Incorporation of money management in trading distinguishes between a successful trader and unsuccessful one in the long-term. Money management […]

Money Management Techniques

Are you trading with correct Money management techniques. It is neccessary for traders to follow the rules of Money Management. These rules will help you earn huge profits within a short period of time. So it is neccessary to plan a Money management technique that would help you to earn huge profits. This helps to lower down the risk and helps you to preserve capital for long term. The following […]

Forex Money Management — The Key To Forex Trade Survival

Several traders who are just getting acquainted with Forex trading regularly fail to accord value to Forex Money Management. They soon discover that leverage offered by brokers can either assist them or cause detriment to them. With leverage a Forex trader is able to rake in a great profit with only a small amount of cash if the market state is favorable. All at once leverage can also […]

Calculating Take Profit

If you calculate your targets based on the average daily range, you can increase your take profit by at least 30%. Usually you set fixed take profit order at your profit target point or you use a trailing stop if you expect more from the current trend. Both method results in profit reduction. I suggest you place your take profit order at a daily range for the currency pair. […]

Fixed Fractional Money Management

In this video Shaun Overton discusses about Fixed Money Management strategy and how it affects the overall outcome of your trades. What we look in this video is how Fixed fractional money management stretches and compresses parts of the output curve and how it shifts the probability of the average outcome. By looking at the Generic Bell curve and Fixed Fractional curve we can see the losing side(red) has the same area as the winning […]