Money Management Techniques!

Discussion in 'General Trading Discussion' started by TraderAnalyst, Jul 8, 2019.

  1. TraderAnalyst

    TraderAnalyst Senior Investor

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    Money Management is an important factor in Trading, rather the most important factor! Traders must not ignore them and utilize them intelligently. Few techniques are follows -
    1. You must decide how much you wish to risk per trade
    2. You do not need to over trade.
    3. You must close your losses and continue with winning positions.
    4. Stay away from Fear and Greed.
    5. Calculate your position correctly.

    Happy Trading!
     
  2. J_C_Anderson

    J_C_Anderson Senior Investor

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    Money management is extremely important. Many traders, especially newbie ones, quite often pay attention to technical part of the trading like searching for signals and entry point, but forget about money management. At the same time, it is necessarey to develop detailed enough money management rules to be able to make profit, because lack of proper money management would lead to losses even if your strategy itself is profitable.

    It could be difficult to answer the quiestions listed above especially if you just started with the new strategy. To get the information on optimal risk per trade or stop width you can backtest your strategy on historical data using special software like Forex Tester or its alternatives. As the result, you will get detailed information on the performance of the strategy, which is important to create money management rules. For example, information on average wins and losses would help you to find out the way to calculate position size according to the strategy and size of your account. Backtesting would also show you the optimal numbers of trades per day or per week, so you will be able to avoid overtrading.
     
  3. tradermuslim

    tradermuslim Active Member

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    You forgot to mention Stop Loss option. It is the best tool to prevent total loss.
     
  4. Brentwood

    Brentwood Senior Investor

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    The key is to understand how it really works and who is right to work with. I was losing funds to a broker and by the time i realised it, i had already lost $52000 which was over half of my savings. I met a friendly trader and she directed me to the recovery agent Mr Bart Kasch. He helped me recover all my money, every penny. Referred him to friends and colleagues already, you can contact him if you need help at [email protected]
     
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  5. Benigna Mazzi

    Benigna Mazzi Senior Investor

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    A money management system is one of the most important parts of the market. A proper money management system can make you earn a lot of money. If a trader doesn't get a proper money management system then it will be tough to survive in the forex market. My broker Eurotrader provides me a strong money management system. They are really very supportive and helpful. They are one of the best brokers I have ever worked.
     
  6. Lindsey J. Crosby

    Lindsey J. Crosby Senior Investor

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    Money Management is one of the focal bit of risk Management. I risk 2% of my capital for each trade. Similarly, the most silly introduction to risk is 4%. It proposes I open most crazy of 2 trades. I figure everyone should keep up their hazard association rules. Without overseeing risk in trading entire arrangement achievement is farfetched. Stop loss is a part of risk management. I am trading with Eurotrader where I study their advanced educational resources to learn more about forex market and trading. They also provides very low spreads and instant trade execution.
     
  7. Lisa Maria

    Lisa Maria Senior Investor

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    Forex trading, I think is the best online earning source for those who are students, women’s, and also for self-employers. They can earn good amount of money by doing Forex trading as Forex is the largest decentralized market. I am doing my Forex trading with Tpglobalfx the much experienced and advanced trading broker. To earn good money, I am using their MT4 trading software as it is much fluent and smooth to use.
     

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