What is the function of Money Management in Forex?

A good money management can bring a good profit that I believe. You have a good money management due to sustain your
account first.

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Originally Posted by mony1

Money management is to preserve the capital and develop an appropriate plan to manage the money and the risk strategy and the use of outstanding orders

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yes you are right, in the forex who have a high risk and more rapid loss in need of good financial management and proper to secure deposits of trading errors, because a little mistake could be fatal which can not forgive

Money Management determine our success in Forex trading..! You will benefit from your good Money Management in Forex..! But in fact, most of traders can't better deal with Money Management..!

Money management is to preserve what you already have in t account rather than making profit. it helps you to protect you money and thereby keep trading for long time so that you can grab a right profitable entry point and make more money than what you have lost in your past trading.

Money management means save your account from any kind of storm.It means how much percentage of your money you want to take in risk.That is if you have $1000 and if you take decision to take 2% risk then you could take a risk of $20.By this you should select your account type and set SL and TP.

control is to get such a way that even if the industry goes to toughest place that's posible u don't reduce your consideration and end up with nothing. they say only to pay 5-10% of your dealing investment for a particular business. before doing that u should determine the variety of the industry within which the forex of your option changes. then u should determine and see the no of plenty u can start according to your dealing investment so that even if the industry goes to the smallest factor your consideration dosent near instantly. this is what i comprehend as control.

any business there are certain risks. mentioned that a perfect zero loss / loss of zero, I think far than flame grilled. because it could all happen in the forex, can suddenly rich, poor dah is also common. so we have to use money management to avoid the things we do not want.

i think money manage is that if u risk ur money than money management give u a warning that u can save ur money in time so money management system is important for all

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Originally Posted by SeoHyun

Yes, money management is the most important isntrument in forex trading if we want to gain maximal profit with minimum risk. With good money management, we can manage our balance about what will we use for lots size and about TP and SL too. This is so important for me. :)

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when trading with the right plan, like loss or win, we will not be too carried away. because we know, loss or profit is part of our trading system. maybe we can even make a loss and the monthly target of psychology to convince us that this is the real trading. No profit, no loss, which is important we keep a monthly surplus.

Proper money management is important in your account. You want your trading account to last and survives the risky nature of this market? If yes then you have to understand that the only way to do that is apply good management in your capital by using low lot size,using stop loss and never do over tradings.