TAKETHEPIPS: Nurturing Professional Traders
  • Home
  • FX Analysis
  • FX Articles
  • Investments

Money management in Forex Trading

1/4/2017

0 Comments

 
Picture
I want to share on the money management approach which i have been using for some time. In general, I will risk 0.5% to 1% of my account size. In any day, i will not risk more than 5% of my account. This is to prevent potential huge drawdown and to limit the trades you can take in a bad day.

In the past, without a 5% daily loss limit money management approach, i have experienced a drawdown of more than 10% in a day. Looking back at my trades, i realised i took on more bad trades whenever i started losing more. I became irrational and I was eager to make quick bucks to increase my equity. 

The lesson is to stick to your money management at all times. Some people may risk 2%-3% per trade, which is still fine as long as it is a sound plan.

Happy trading!
The most important lesson in forex is money management. With good money management and an average strategy, you may be able to make a small profit in the long term. If you have a good money management with  a good strategy, you will be able to see a decent equity return.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Archives

    July 2017
    June 2017
    May 2017
    April 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    February 2016
    December 2015
    October 2015
    July 2015
    June 2015
    May 2015
    April 2015

    Categories

    All
    Day Trader
    Elliott Wave
    Forex Brokers
    Forex Courses
    Good Habits
    Indicators
    Learn To Trade
    Managing Trades
    Money Management
    Professsional Traders
    Reasons To Trade Forex
    Risk And Reward
    Risk Management
    Statistics
    Trading Software
    Trend Trading
    What To Trade?

FX TOPICS
DAY TRADING | ELLIOTT WAVE | BROKERS | COURSES | INDICATORS | LEARN TO TRADE |
MANAGE TRADES | MONEY MANAGEMENT | PROFESSIONALS | REASONS TO TRADE | RISK REWARD |
RISK MANAGEMENT | STATISTICS | SOFTWARE | TREND TRADING | WHAT TO TRADE
SERVICES
Home
FX Analysis
FX Articles
Investments
COMPANY
About
Privacy
Disclaimer
SUPPORT
Contact

© COPYRIGHT 2017. ALL RIGHTS RESERVED.

Photos used under Creative Commons from TipsForComputer.Com, jeffdjevdet, Celestine Chua, steve p2008, Sebastiaan ter Burg, PinkPersimon, jacqui.brown33, szwerink, SurFeRGiRL30, PinkPersimon, Industrial Traffic, MSC Academy U12 Green, what's_the_frequency, opensourceway, kosmotesto, PinkPersimon, gr33ndata, NashvilleCorps, djromanj, thedailyenglishshow, Joe The Goat Farmer, Tambako the Jaguar, haynie.thomas36, GotCredit, Accretion Disc, GotCredit, Photographing Travis, jeffdjevdet, gunman47, Keoni Cabral, HerryLawford, kev-shine, Jim Makos, Mawoo86