It's important for traders to succeed in forex and stay in the game, now I would like to share with you guys how important money management in order to win from forex and as well forex broker.
First, look at your account size, for mini account with deposit of $250-500, recommended trading will be 0.01 or 1k, then you can only afford to lose 1-2% maximum.
If you have $1000 and above then you can easily open 0.10 or 10k, same theories apply to those above 1-2% maximum risk. This is to say your risk reward ratio and below i will show you how you can apply this in your trading and get more money without the anxiety to close your trade every second, after reading this you are the boss of your own casino xD
Don't expect the market to reverse if you are in the losing position because it can wipe out your account, and i heard of many stories of frustating traders because they simply don't follow money management rules.
Now, simple money management in playing the game.
If you open LONG or BUY 0.1 or 1 mini lot (deposit of $1k account) of EURUSD at 1.4045 for example set your stop loss at $20 which is 1.4025. When the price moves to 1.4055, then set your stop loss at 1.4050 to give the market some room, if the market move against you then you can have a profit of $5.
Now, let say the market moves according to your plan, then it continues to move to 1.4070, then move your stop loss to 1.4065 in which you have $20 in hand, well don't close at 1.4070 because you want to secure $5 extra profit instead you have already secured 1.4065 at the first place, why? If you open a new trade then you have to pay for the spread again and the market might go against you. The reason i choose 1.4070 is because to give the market some room.
Now at this point i will let the profit run and check your chart or indicator for a good time to exit the market, therefore you can benefit from this tips avoiding bad brokers with delay, slippage etc.
Hopefully my simple tips can help your trades gain more pips and profit.
First, look at your account size, for mini account with deposit of $250-500, recommended trading will be 0.01 or 1k, then you can only afford to lose 1-2% maximum.
If you have $1000 and above then you can easily open 0.10 or 10k, same theories apply to those above 1-2% maximum risk. This is to say your risk reward ratio and below i will show you how you can apply this in your trading and get more money without the anxiety to close your trade every second, after reading this you are the boss of your own casino xD
Don't expect the market to reverse if you are in the losing position because it can wipe out your account, and i heard of many stories of frustating traders because they simply don't follow money management rules.
Now, simple money management in playing the game.
If you open LONG or BUY 0.1 or 1 mini lot (deposit of $1k account) of EURUSD at 1.4045 for example set your stop loss at $20 which is 1.4025. When the price moves to 1.4055, then set your stop loss at 1.4050 to give the market some room, if the market move against you then you can have a profit of $5.
Now, let say the market moves according to your plan, then it continues to move to 1.4070, then move your stop loss to 1.4065 in which you have $20 in hand, well don't close at 1.4070 because you want to secure $5 extra profit instead you have already secured 1.4065 at the first place, why? If you open a new trade then you have to pay for the spread again and the market might go against you. The reason i choose 1.4070 is because to give the market some room.
Now at this point i will let the profit run and check your chart or indicator for a good time to exit the market, therefore you can benefit from this tips avoiding bad brokers with delay, slippage etc.
Hopefully my simple tips can help your trades gain more pips and profit.
Comment