Money Management

Money Management is a method of forex traders manage their accounts . Money management is very important for forex traders . A good Money Management helps to protect your account from byankaryaptasi. If you follow a good money management is a very low chance of losing your capital Some of the best money management rules include:

1 . Account of the small risk parsenateja StepsWhy is it important to take account of small parsenateja Risk ? This is because you must keep your account alive . Maintaining your account first , and then the profits should be considered .Good traders who can survive on their accounts and are concerned about .If you trade with a low risk of any trade with your loss , but if you are more than able to hold your trade .Low and high risk trade with your trading account total parsenatejera seen an example let down . See how your account is drawn 10 in Los trade can harm.

Clearly shows the difference between the % risk and 10 % risk . None of the 10 trade harena easily pulled . If you trade in the worst , even if you're 10 % of the trade for Risk Capital for Harley you lose 17 % , where 10 % risk per trade if you trade 10 Harley you will lose more than 60% of your Capital . Thus , to understand the importance of money management . If you can not make a proper money management , you can be facing a massive loss .The. Capital recovery kathinah loseIf someone loses a portion of its accounts , how difficult it is to recover ?If you lose 50% of your account , you can gain loss will recover 100% of your new balance . And if you lose 75 % , just before the new balance will be 300 % profit to recover loss . Once you do so , then the enormous Los engage with the Los recover , but who will profit ?The challenge here . Try a demo account for at least 300 % , or 100 % profit on your real account can not. It is not so simple . Money management is important to support this .

3 . Risk ahrioyarda before trade : the ratio ofTo profit from the possibility of a trade to Los ones , and refrain from trading . There are no words that will always make a trade .Example: 1 . Los vs 30 pips 40 pips profitThe. 20 pips 20 pips profit vs lossUdaharanai two o'clock example risk management .Make sure it is open before making a trade risk : reward ratio of at least 1 : II ( 1:3 ratio or greater good ) .This means that you should open a tredai which will tataguna likely to profit from the size of your loss . For example, you can gain 30 pips to 100 pips Pursuant to Los sensible to make trade entry .If you follow the Rules of Money Management , but it will later help you to get out and get stable profit .
Risk : reward resiora See the chart below . Here's a 1:3 risk : reward ratio of the trade was 10 .Los trade for a while , he lost $ 100 dollars . But the $ 300 dollars of profit each has trade profitably .So , it turns out , if a trader 1:3 risk : reward ratio is 50 % if the trade is successful , but they can gain a good amount .