I may be new at this, but it seems to me that money management, ie risk managment,(making sure your combined wins outweigh your combined losses) is an essential part of any trading system.
You first need to decide what % of your account you will risk before you even start trading a system, no?
And please do be careful.
I have head many a tale of traders who had some good initial luck with a new system, kept increasing the % of their account, meaning higher leverage, and then experienced several losing trades in a row, which wiped out not only their profits but much of their accounts as well.
Remember what Einstein said about compound interest, “Its the 8th wonder of the world.”
If you make just 1%/week then after 52 weeks you have 67% gain.
Assumeing that capital gains on Forex is counted as income,(is it?) then the most you will pay is 50% in taxes. So to be conservative cut that 67% in half.
You are making 33.5% net annual returns. If you can do this consistantly then you will double your account every 2 years, approximately.
Thus after 10 years you have 3100% return, making a $1,000 account worth $32,000. After 20 years your account is worth over $1 million.
Now imagine you start with $10,000.
Your first million will come in less than 7 years. And after 10 years you can retire in luxury.
By the way, for the record I never risk more than 1% of my account. I also use Oanda which lets me increase and decrease lot sizes by the individual unit, meaning 1 Euro, dollar, ect. to always risk 1% no matter the drawdown or exponential profit growth.