Money Management for New Traders.

[WDholic]

Just 4 things:

1. Maintain a fixed percentage of Account Balance for Calculating your lot size. More easier you can open any size of orders if you have for example 1000 pip backup, just like 10 cent per pip for 100$ balance and it is widely used.

2. Risk a fixed percentage of your total balance on each trade. Mostly used is 3%, like 3$ for 100$ account balance. So if you want to setup your trade now for 100$ account balance use 30 pip Stop Loss or Tolerate 30 pip loss per trade.

3. Third is how many Consecutive loss trade you might tolerate on a single trading day. Mostly used 2. It means if you loss 2 consecutive trade just stop your trading for that day.

4. Don�t change your money management system after one or two day of suffering loss.Blindly follow a fixed money management rule for your everyday trading. It will ensure your fund safety and getting consistent profit

Revision: For every 100$ account balance open 0.01 Lot(micro lot), use 30 pip stop loss or close your trade in 30 pip loss and if you loss 2 trade consecutively then don�t open any new trade on that day to recover your 60 pip. Most importantly don�t change your money management rule for that 6$ loss.

�If you use proper Money Management then any Basic, Simple or Advanced strategy will make money��

Thank you.

Nice strategy..
by the way its more dificult to calculate if we trade in pair USDxxx than xxxUSD..
coz per tick is not equal 1

[zahidrock]

Money management one of the most important element for this business. Most of the trader fail in this business because they did not follow good money management. And i think every trader need to use this on every time trading.

[nazmulhyder]

every single word of your thread is true. those who follow these rules must succeed in forex market. but the problem is that only a handful people remain concentrated to the rules and the rest break the rules at some point. for new traders the main problem is that they do not understand the money management perfectly, mostly the calculation of money management. they do give more concentration in technical analysis than money management. so every new trader should understand the calculation of money management correctly first.

[jiching]

money management is the important thing for newbie to survive in forex..
i have lost our money for 3 months as a newbie, because i traded without mm.
after i knew money management, i use mm in each my trading.. finally, i have not loss and margin calls again.

[Feroz hossain]

yes detail are help for every person who trade forex forum india.i think it's also help us and we go ahead

[netros]

yes, money management is one of the most important thing every forex trader needs to succeed in the risky world of forex. Every forex trader must learn and know the principles of money management. It's very important for trader

[gandhi]

ya agree, in my money management in forex trading is very important especially for beginners, so you can trade wisely and you can minimize the loss and profit consistently every month.
ok good luck.

[dedi]

Money management is the most important factor in Forex trading. Does not matter how good a trader you are or how much capital you have. If you do not manage your money properly, you are going to suffer a lot. This is what you said here and showed us how to determine lot according to our capital.

I am very interested with your opinion and I strongly agree,,, arrangement or management of money in business is trading very important for traders because if ach so bad with money management arrangements will definitely lose a lot of money ... I'm sure it was ...

[shough02]

As a swing trader your money management strategy is the forex is the one variable that will speaking of survival,if you are a new to trading or if you are a conservation,

[forex blaster]

Money management is always important for new traders and i agree with you so much.
Thanks for sharing your very informative and helpful threads which is must needed for us.