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Thread: What is money management? Part 1

  1. #1
    Moderator cool user Resolve's Avatar
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    Lightbulb What is money management? Part 1

    What is money management? Part 1

    When you are trading in the forex market one of the most important factor for survival is money management. The amount of equity that you have in your Forex trading account needs to be preserved and only certain portion of that could be used for active trading. This is because if you make a loss then the losses will be limited and you will have another opportunity for making profits and increasing your account equity.

    A better practice is to make use of not more than 5% of your account equity for your active trading so if you have an account balance of US dollar 10000 then 5% of US dollar 10000 is is US dollar 500.

    When your risk of a loss in your trading account will be minimised then you will be able to protect your account equity and also grow it with consecutive profits.

    I have seen that many of the newbie traders are not following the principles of the Effective Money Management and the result is the losses in their tradng account and also Fully Blown Trading Accounts.

  2. The Following 2 Users Say Thank You to Resolve For This Useful Post:

    MELEK TÜRKOĞLU (09-14-2020), Pabloo (08-19-2020)

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    Thank you for sharing, as rah that gap of knowledge, which I missed so much.

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    Thanks for your sharing, it's an useful knowledge for everyone.

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    Moderator cool user Resolve's Avatar
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    This topic is being updated for further discussions...

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    Moderator cool user Resolve's Avatar
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    This topic is being updated for further discussions...

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