What is the function of Money Management in Forex?
who can explain to me please!
Thank you so much
Printable View
What is the function of Money Management in Forex?
who can explain to me please!
Thank you so much
of course to keep a more consistent trader in the trading, avoid greed in order to maximize profit there. I use a money management with daily profit targert 10 Pip.
money management is to invest in such a way that even if the market moves to worst position that's posible u dont loose your account and end up with nothing. they say only to invest 5-10% of your trading capital for a particular trade. before doing that u should calculate the range of the market within which the currency of your choice fluctuates. then u should assess and see the no of lots u can open according to your trading capital so that even if the market moves to the lowest point your account dosent close automatically. this is what i understand as money management.
the core concept of the consistent performance and the long life in the forex is that we make good money management and have the firm control on the money management that we have made of ourselves
It is very tough to explain it in brief.Money management is a system.It ensures your profit stable.If your money management is bad,you may become looser.So, you should be good with money management.
Money management helps in protecting a forex traders account in their forex trading. It allows a trader to risk only a given amount of money in each trade they open. For instance it can help us to risk just 3 dollars if we have a capital of 100 dollars.
course in general money management to avoid bankruptcy due to us from tersered by the current market as opposed to our trading positions in money management is also set on the lot and the leverage and the amount of trading that we do and how and at what los stop take profit, without it we do all the difficult trading regardless of the amount of capital we invested in this forex, money management is also part of the trading system should not be separated there will be no trading forex without money management.
Money management is a process that maximizes your profit and minimizes your loss with the total amount of revenue you have before forex trading. For secure trading in forex money management is the must for all traders. Otherwise market will engulf all the invested amount soon without fair money management system.