Handling the cash is a great ability in Fx trading , practically your all trading understanding and most powerful egy can be flop , if you do not understand how to manage money . So we have with this trading plan first of all to emphasis.
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Handling the cash is a great ability in Fx trading , practically your all trading understanding and most powerful egy can be flop , if you do not understand how to manage money . So we have with this trading plan first of all to emphasis.
Yes, really good point. How much we could make our trading egies it totally depends on our cash managing egy.
Personally the risking 1% does not work really well. In addition, it leaves you treading water and at worst it gradually chips away in your balance.
Yes its true , the more you risk , the more you gain . But novice trader must minimize his risk if trading , 1-3 percent risk is more appropriate to allow them to avoid reduction with certainly.
Yes and the further you risk the more you lose. Do you think the majority of people lose money in FX? They have unrealistic expectations of the money that they can make. They risk too much thinking they can make more money by doing this.
Forex is a very professional market so better to make an initial trade management plan and then better stick to it.
Yes, a healthy profit ratio is always helpful! On the flip side, you have to use little risk reward ratio! Money management is the most effective weapon here to guard your trading balance from any unfortunate result!
Its not a weapon ! Its common sense and not being greedy. The majority of the 95% that fail in Forex believe they will get rich from it.
In the event that you put $1000 in the bank and receive a return of 3% you believe that's a great thing. But in Forex folks look for returns of 100 %
Common sense (should) tell you that's MADNESS
Trade management is preferable and more critical than money management per se. Most here speak about MM in the context of limiting your loss and maintaining your trading funds that's meaningless if your trade management is not strong enough to generate sustainable and consistent gains. You need to know exactly where the watertight and service levels are first afterwhich then you will put your entry/exit closest to those levels in order to optimise your RR ratios that's the correct and only MM to be successful in this organization. With this ability even the very best MM will finally bust your account. The only distinction is if it is by one fell swoop or with a thousand cuts. The end result remains failure at it's greatest. Not wanting to place to down but the reality is such.
Pls disregard my msg if you're feeling slighted. Just stating the truth. Forex is all about trading rather than investing.
Cheers
GS
That's ideal. I totally agree.
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