noplan88 Posted August 5, 2009 Report Share Posted August 5, 2009 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. Quote Link to comment Share on other sites More sharing options...
ppc123 Posted August 5, 2009 Report Share Posted August 5, 2009 Re: Money Management Tips I think another simple rule for money management is periodic withdrawal especially for your more risky accounts... Quote Link to comment Share on other sites More sharing options...
noplan88 Posted August 5, 2009 Author Report Share Posted August 5, 2009 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. Quote Link to comment Share on other sites More sharing options...
noplan88 Posted August 6, 2009 Author Report Share Posted August 6, 2009 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. Quote Link to comment Share on other sites More sharing options...
Quinn Posted August 6, 2009 Report Share Posted August 6, 2009 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. Quote Link to comment Share on other sites More sharing options...
BennyS Posted August 9, 2009 Report Share Posted August 9, 2009 Re: Money Management Tips helo Do you have ebook / video about money management? btw thanks for the tips Quote Link to comment Share on other sites More sharing options...
imatache Posted August 9, 2009 Report Share Posted August 9, 2009 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. Quote Link to comment Share on other sites More sharing options...
bobtom55 Posted August 11, 2009 Report Share Posted August 11, 2009 Re: Money Management Tips Always withdraw profits at least once per month. Never risk more than 2% of your account on any trade. Quote Link to comment Share on other sites More sharing options...
eichengrun Posted August 12, 2009 Report Share Posted August 12, 2009 Re: Money Management Tips helo Do you have ebook / video about money management? btw thanks for the tips Read "The trading game" by Ryan Jones Quote Link to comment Share on other sites More sharing options...
eichengrun Posted August 12, 2009 Report Share Posted August 12, 2009 Re: Money Management Tips 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 Quote Link to comment Share on other sites More sharing options...
saronian Posted August 13, 2009 Report Share Posted August 13, 2009 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. Quote Link to comment Share on other sites More sharing options...
dbg Posted August 13, 2009 Report Share Posted August 13, 2009 Re: Money Management Tips if i am an aggressive trader is 10% too much? :-? Quote Link to comment Share on other sites More sharing options...
saronian Posted August 13, 2009 Report Share Posted August 13, 2009 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. Quote Link to comment Share on other sites More sharing options...
Hacker1713006064 Posted August 13, 2009 Report Share Posted August 13, 2009 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... Quote Link to comment Share on other sites More sharing options...
jacquespienaar Posted August 13, 2009 Report Share Posted August 13, 2009 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 Quote Link to comment Share on other sites More sharing options...
noplan88 Posted August 13, 2009 Author Report Share Posted August 13, 2009 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 Use the tricks, once your profit reach 15-25 pips, set stop loss at that price, then let it run. With this method, you have already locked in profits, then if the price goes against you, you will still have locked in profit because you set the stop loss at your desired pips 15-25. Then let profit runs, then you can have more pips without risking your consistent profits, i can say greed in control unless for aggressive trader might set stop loss at breakeven. Quote Link to comment Share on other sites More sharing options...
noplan88 Posted August 13, 2009 Author Report Share Posted August 13, 2009 Re: Money Management Tips helo Do you have ebook / video about money management? btw thanks for the tips This might be a little help. http://www.forexsharing.com/856253 Quote Link to comment Share on other sites More sharing options...
kokowawa Posted August 15, 2009 Report Share Posted August 15, 2009 Re: Money Management Tips the information provided were very helpful. I appreciate providing it to me Quote Link to comment Share on other sites More sharing options...
ougoah Posted August 15, 2009 Report Share Posted August 15, 2009 Re: Money Management Tips Personally I never risk more than 2% of my account at any given moment (all open trades added up). Here's a calculator for the position size you should take given you capital and risk % so you don't have to do the calculation yourself: http://www.forexcalc.com/ Quote Link to comment Share on other sites More sharing options...
braziallinare Posted August 15, 2009 Report Share Posted August 15, 2009 Re: Money Management Tips I have found only risk .001 per $100 on mini lots i found with this level starting a small account looses wont kill you. remeber live to trade onther day. :) Quote Link to comment Share on other sites More sharing options...
Doms Posted August 16, 2009 Report Share Posted August 16, 2009 Re: Money Management Tips One of better things that you can do if you have 2-3 losing trades in a row... Lower the size of lots. If you start winning, return it to original lot size. Quote He who can, does. He who cannot, teaches. Link to comment Share on other sites More sharing options...
traderethan Posted August 16, 2009 Report Share Posted August 16, 2009 Re: Money Management Tips thanks a lot. I always believe money management is one of the most important aspect in trading :) Van Tharp's books are recommended Quote Link to comment Share on other sites More sharing options...
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