For me, only money management that will save me in any situation. Each trade is requiring money management and trade to satisfy their desire.
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For me, only money management that will save me in any situation. Each trade is requiring money management and trade to satisfy their desire.
Yes, a good question. Money management in forex is very vital and key to your success in forex trading. With good money management you dont worry when the market is doing badly and not trending. Money management actually protects your account from a clean out, good money management keeps you riding fine even when the market is in its worst conditions. You may make a few losses but you would get back winning when the market begins to do fine and trend fine again.
Money manage is the most important thing ... its about how u manage ur money in forex market and how u deal it its impotant to have good sense about ur money dealings and money management thats its really !!
in short,thru the process of money mngement the person saves his money..because before do trade we gt to know what amounts of fund we manage in this particular trade & what percent we get thru trade....
money management plays an important roles in forex trading business to safe our money in this forex trading business. because many people more greedy in forex trading business and do not follow the money management rules and loss their all money in forex trading business. so, must follow the money management rules to safe your money.
money management can facilitate the merchandiser to be ready to organize a way to do safe commercialism from the utilization of capital that we've got.and it's the most effective thanks to do the traders to the capital they need become safer, and our traders will survive for much longer during this business.
it manage our capital and protect it from loosing all of our money rapidly in forex bussines.in money management we calculate how much loss that we can afford in every trade ( usually its about 1-3% of our capital),and some traders use money management very well so yhat they can compound there profit and growth their capital by dicipline using their money management.Quote:
Originally Posted by DrJoe
Money management in forex trading has many functions. One of them is to extend the life of your trading account, without using money management because there is a possibility we will be trading account short-lived. In addition, the money management will impact on the psychology of trading, we will be more secure and comfortable in trading.
We need money management to control our capital and divert our capital to trade in pips value. Also we use it for control and determine the risk amount that we have to take for every transactions. A trader is hard to improve without proper money management.
I think it is a broad topic. To explain details it need many time. Money management is very important in forex because if any one can't manage his money his trading mah in loss. But if his money management system be developed he can make more profit.