Why money management is is so darn important in forex trading? Because, we, my friend, are in the business of making money, and in order to make money, we need to learn to manage our money.
As a seasoned forex trader, I advice all who would like to venture into Forex Trading, should focus first and foremost on money management. Believe it or not, most beginners are looking for that one trade that could make them rich.
They are looking for that jackpot trade. And because of that, they overlooked money management. They did not calculated and reconsider the aspect of their capital, risk/reward ratio and so on. All they did was push the trade button and hoping for a jackpot.
This is why 95% of beginners fail to make money and had a margin call on their account. Forex is a business, and like all business you should focus on money management. Learning to manage your money in forex can and will profit you in the long run.
Learn how to calculate risk/reward ratio, calculate how much losses in a row your capital can take before a margin call, obey your stop loss, and don't hang on a losing battle. If you can do this and implement it in your trading system, then you will be guaranteed to be successful in forex trading.
If you find it difficult to do the calculations mentioned above, then I advice looking for a proven automated forex trading system, most of this system has been design around money management, and have been consistent in making profit and also managed losses.
| Most automated trading system is not as consistent, but still better than trading without money management. It is advisable for you to test out a system first before using your real money. To view the most consistent and proven automated forex trading system all you need to do is click here. |
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