Money Management is important

[Robert Hills]

Money management is important in forex trading. Pro traders do not risk more than 1% to 5% of their capital in a single trade. But only a handful of traders actually follow this rule. Proper money management rules must be followed by all traders at all times in every trade. I trade with proper money management. This protects my capital and helps me to stay in the market for the long term.

 

[rouzbeh_askari]

Money management is important in forex trading. Pro traders do not risk more than 1% to 5% of their capital in a single trade. But only a handful of traders actually follow this rule. Proper money management rules must be followed by all traders at all times in every trade. I trade with proper money management. This protects my capital and helps me to stay in the market for the long term.

I completely agree with you and I learnt it the hard way . after a decade of trading and few stop outs , now I barely risk 3-4 percent and usually do 1 percent .

 

[Herrella]

Yes, money management is indeed important to become a good forex trader. Traders should assign a risk reward ratio to every trade they place. And we all should remember: trade what you can lose to afford.

 

[horgen]

Well said! No strategy guarantees 100% success. Traders need to trade with calculated risks. It is better to always try out a new strategy on a demo account first and then use it on live.

 

[sjjsjsjsmzmz]

with you and I learnt it the hard way . after a decade of trading and few stop outs , now I barely risk 3-4 percent and usually do 1

 

[Schmooze]

Absolutely! Money management is important because it helps to minimise losses. Both money and risk management are closely interlinked. As a trader, you should take necessary steps to prevent losses, such as using stop loss and take profit order

 

[sooriya]

Yes,it is important.Forex money management aims to minimise trading losses so that they are 'manageable'. That means when a trade turns to a loss, it does not prevent the trader from winning other trades. The idea of money management is closely linked to risk management because when trading, all the risks portend to your money.

 

[Supercilious]

It’s true that the profits depend on the money you put into the market. But it doesn’t mean that you should put all the money you have because you must also not forget that you don’t have a 100% chance of making money. Be thoughtful and trade with the money you don’t mind losing. You will need to give a lot of time to the market to be able to recover what you have lost.

 

[shortham]

Without a doubt, money management is important for traders to minimise their losses and maximise their profits. The basic rule is to risk money which traders can afford to lose. Some of the steps that traders can include in their money management are-

1)Assign a risk reward ratio to their trades.
2) Make use of stop loss and take profit order
3)Risk a small percentage of money on each trade.

 

[Allegator]

Money management in forex is very important. Without proper money management, one can easily get into a difficult situation. In forex trading, the trader's capital is at risk at all times. Having a good money management plan will give them better control over their money.

 

[Svengali]

The ultimate goal of your forex trading career is to make profits. But you must not overlook that minimising losses is also important. With a well-built money management strategy, you can get the best of both worlds.

 

[pippin]

I can't imagine how a trader can be profitable without money management. Even with correct signals if you trade with wrong positions often you will caught stop losses to often, leaving you with missed opportunities too much.

 

[dreamercreamer]

Risk Management is good... but do you know whats better? Getting as close to the turning point of a market risking no more than 0.75% per trade with scope to make 5:1 back.

 

[Tomfoolery]

Money management is said to be the main key element of all the trading approaches. It allows you to minimise the risk by increasing or decreasing the size of the position. The best way of managing money in trading is to calculate the risk reward ratio and follow the 2% rule of trading.

 

[Sherverty]

Money management is important in forex trading. Pro traders do not risk more than 1% to 5% of their capital in a single trade. But only a handful of traders actually follow this rule. Proper money management rules must be followed by all traders at all times in every trade. I trade with proper money management. This protects my capital and helps me to stay in the market for the long term.

Money management is very important to make a good career.

 

[TraderMark]

Despite their good intentions, many people fall off the financial bandwagon. Sticking to a budget that’s too restrictive can be suffocating. Navigating investment jargon can be confusing. But don’t get discouraged.

You didn’t get in the financial position you’re in overnight, and you won’t get out of it overnight, either. Give yourself time to learn and grow. With hard work and dedication, you can manage your money with confidence.

 

[Hoper]

To be honest, trading is not for everyone. This must also be recognized

 

[ShihTzu]

Money management helps you to manage your funds and decide the amount of money you could use for trading without risking too much. It also makes sure that you always have money left to trade again in case of a loss. It is better to prepare yourself before the trade than making a loss and then realising the importance of money management.

 

[VargaDimwit]

Money management in forex trading is very important. It allows a trader to calculate his trade and decide his exact entry and exit point, and also his sl and tp values.

 

[shahzad105]

money management is mother of seccess in forex markete