Money Management for New Traders.

[jeetnrimi]

Bhai, Money management or risk management forex market me survive karne aur apne loss ko kam karne ke liye most important things hai, ye new traders aur experienced traders dono ke liye bahut jaruri hai aur har forex traders ke paas eski good knowledge honi chahiye.

[daniya1432]

forex business may money management ko bhot important hasil hay our humy market ka hasab say investment kar kay trading karni cheay our new trader ko start may money management ka khash khayal rakna cheay tak ain ko loss na how

[hassaantariq]

money management is the main factor to be learnt by new traders because they are in so much hurry of makng money fast that they forget that this market can also give them loss as well and they suffer loss.

[ateftrader]

Money management is a process that we must undergo if we want to survive in the forex market.the main reason behind fails is lack of knowledge and expedience. Lack of knowledge is the reason of all sub reason such as lack of money management, lack of practice, lack of proper strategy . So I suggest trader to practice more and more in demo account for the betterment of trading strategy.

[waqasobia]

every trader need make stredegy 1st. see trend then see support & resistance ... if market in selling u will give sell with gaps not big lot small lots with stoploss set ur tp as for support & trend lline ... hope fully daily work out give good chance both side...

[hassaantariq]

for a new trader money management is very important and necessary because he often looses his money in the start due to poor money management and then he becomes disheart so he should use management skills.

[kaleem333]

Money management and risk management area unit each quite required in forex exchange mercantilism business for the new traders. we are able to use heap size, leverage and risk reward quantitative relation to with success calculate metric linear unit in our trades

[david]

money management bahot useful thing hai is market mein agar aap moneymanagement se trading nahi karoge to aapka bahot loss ho sakta hai to hamin thoda apne capital ke hisab se trading karein aur ek baat ki overtrading to bilkul bhi na karein

[zarir80]

when you want to choose the leverage of your account. Nowadays you can have even a 1:500 leverage but this leverage is too big for new traders and even experienced traders try to avoid it. A 1:200 leverage is acceptable. I do not want to talk about leverage in this post because this post has to be focused on money management but briefly, leverage is the facility that your broker gives you to enable you to manage bigger amount of money using a smaller amount of money. For example if a broker gives you a 1:1 leverage account, then when you want to buy 100,000 USD against Japanese Yen, you should have 100,000 USD in your account at least. But if a broker offers a 1:100 leverage, then you only need to have $1,000 to buy a 100,000 USD and so with a leverage of 1:500 you only need to have $200 to buy 100,000 USD

---------- Post added at 09:01 AM ---------- Previous post was at 09:00 AM ----------

So why having a big leverage like 1:500 is dangerous? Because you can trade a huge amount of money and if your trade goes against you, you lose all your money very easily. When you have a $400 account with a 1:500 leverage, if you buy 100,000 USD against JPY and it goes against you for 40 pips only, you will lose all your money and you can not trade anymore. Whereas if your account leverage was 1:100, you could buy maximum $20,000. If you trade $20,000 with a 40 pips stop loss and your trade hits your stop loss, you lose $80 but a 40 pips stop loss with a 100,000 USD position equals to $400. To risk $400, you should have a $20,000 account, not a $400 account because we are supposed to risk only 2% of our capital at any time, not 100% of it.

[brimou 19]

Money management is the key to success in Forex trading business and without money management and risk reward ratio we are not going to get success with any successful strategy and trading plan as no strategy is 100% guaranteed for winning, and one loss without money management will harm our account badly which we can not recover but losses in trades with money management are easily recoverable.