Announcement

Collapse
No announcement yet.

Money Management Tips

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Money Management Tips

    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.

  • #2
    Re: Money Management Tips

    I think another simple rule for money management is periodic withdrawal especially for your more risky accounts...

    Comment


    • #3
      Re: Money Management Tips

      That is also good, what i am trying to convey here is, especially for new trader that this is the trick so that they don't have to scared of blow up account, chasing for pips, waiting for pips to come. It's like letting them a simple way to get more pips without working so hard.

      Comment


      • #4
        Re: Money Management Tips

        It depends on how much do you want to start in forex, that is the amount you are comfortable with to risk, well it depends on the individual, for beginner small amount such as $250-500 trade 0.01 or 1k would be ok, once you are familiar with the currency then you can move on, don't expect to get good return overnight that will not happen, it will just blow your account.

        Practice and practice in demo before you go live, what practice in my terms, if you want go live with $250 then demo this amount, treat your demo as your live account, control your emotion in trading, for beginner i suggest practice with one currency, don't open up so many currency chart, for suggestion EURUSD will be the easier one, low spread and mostly traded major.

        Comment


        • #5
          Re: Money Management Tips

          Not just that, u must withdraw the money u have and keep a minimal cash in your acc so that you dont get busted when things turn against you.

          Comment


          • #6
            Re: Money Management Tips

            helo

            Do you have ebook / video about money management?
            btw thanks for the tips

            Comment


            • #7
              Re: Money Management Tips

              If your target lotsize is say "X", I recommend you place your first position at 1/5 of X, then add lots if the market is moving against you. Works well with some currency pairs, be careful to stay away from margin call. This averaging technique one of the best ways to stay close to the market movements.

              Comment


              • #8
                Re: Money Management Tips

                Always withdraw profits at least once per month. Never risk more than 2% of your account on any trade.

                Comment


                • #9
                  Re: Money Management Tips

                  Originally posted by BennyS
                  helo

                  Do you have ebook / video about money management?
                  btw thanks for the tips


                  Read "The trading game" by Ryan Jones

                  Comment


                  • #10
                    Re: Money Management Tips

                    Originally posted by BennyS
                    helo

                    Do you have ebook / video about money management?
                    btw thanks for the tips
                    I´ve read as well "Trade Your Way to Financial Freedom" by Van Tharp

                    Comment


                    • #11
                      Re: Money Management Tips

                      Yes I fully aggree.
                      Money management is the most important thing in the forex trading.
                      So be wise to trade your money not more than 5% loss per trade.

                      Comment


                      • #12
                        Re: Money Management Tips

                        if i am an aggressive trader is 10% too much?

                        Comment


                        • #13
                          Re: Money Management Tips

                          The second thing related to the money management is your trading system.
                          If you have very profitable TS that you can 100% believe it and has 100% winning trades then you can put the highest risk as possible to allow max drawdown to avoid margin call.

                          Comment


                          • #14
                            Re: Money Management Tips

                            Heres a little EA that I wrote last fall.. I wrote this to test a function I was writing.. Setup a demo account on whatever broker you want with whatever starting balance you want, then apply this EA to a chart and it will tell you what the broker info is.. It will step thru PercentageRrisk of 1 to 100 % and tell you what the lot size should be.. Ive run this on just about every broker; but there could still be a bug.. Let me know if you find a problem...

                            Comment


                            • #15
                              Re: Money Management Tips

                              I learned that being greedy bites me most of the time and that I should be happy with 15-25 pips when it arrives.

                              Jacques

                              Comment

                              Top Active Users

                              Collapse

                              There are no top active users.
                              Working...
                              X