If anyone can give some advices regarding money management, it’s appriciated.
You are here and this the platform for forex trading, if you are interested then you can make money or mange your money with efficiently if you have idea about the trading.
Forex market is 24*7 profitable market BUT when you have idea about the market terms,research and aware when to buy or SELL then you manage you r money or invest properly.
I will suggest dont jump into the market till you are not aware with PROS & CONS.
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don’t ever risk more than 1% per trade. do not deposit money you can’t afford to lose.
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1% risk is very much safe and sounds when trading in practical but thats not possible at all to keep this percentage for all time.
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there is anyone who can tell the similarity between money and risk management.
I found this book very helpful when it comes to money and risk management. The Universal Principles of Successful Trading: Essential Knowledge for All Traders in All Markets by Brent Penfold.
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Why is it not possible to keep this percentage all the time?
Money management is how you manage your money ie the trading size, what you can trade looking at capital size, how you enter the trade, scale in or average in, how you exit etc. Risk management is a more institutional term but it’s how you manage your risk eg portfolio risk across managers or instruments, how many positions you have on in total, reduce behavioural and psychological risk. However both terms are used interchangeably here so doesnt matter.
Eg for me. I manage money by trading 1-2% a trade. I manage risk by not holding over the weekend.
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Invest whatever you can afford. Dont squeeze money from your expenses.
Dont risk more that 2% on your trades.
I suggest you read Mark Douglas, Trading in the Zone. Trading, as much as possible, needs to become a probability bet. As if flipping a coin. No expectation of winning. Only decide how much you will pay to see if you are right. If thinking of trading as flipping a coin, it will also help to keep your emotions in check. Random distribution of wins and losses–that is it.
totally agree with you!
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what you think 2 5 risk always easy to keep when particularly market moves at random.
You can reduce risk by widening the stops and reducing the trade sizes. Your trades may be smaller, but the market is moving faster, so there will be greater opportunities for to trade.
Play it safe, diversify, don’t over expend it on trading.
That’s really correct, don’t spend more than you can affor to loose anyway. That’s very solid advice which a lot of people seem really do not care at all anyway. See my point ? I am totally absent with this for example. Share your thoughts too.
money management and risk management its all about same issue or there is any any major difference ?
NEVER RISK MORE THAN 2% OF YOUR AMOUNT IN FOREX TRADE…
if you have $ 250 you will divide by 50 and this way you will have your 2% income
that would be in this case $ 5.00. then you make $ 1.00 entries. took 5 reds in a row STOP, why will, not enter the negotiation for revenge. The so-called domino effect is where you lose everything. This is the most appropriate management that makes commerce safer. but it is not a careless security, try also to set a trading time. you will be fine.
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