I must admit that money management is among the key ingredient in success in fix in addition to having agrisp of technical,fundamental tools by ur side. chose one or two but not more than three indicators n study them in depth,demo trade them and only after being consistent in demo then go live. by consistency i mean at least six month in demo. being a newbie i recommend u trade less often preferably twice a week 8× a month 96× year. we fail bcoz we over trade trying to chase the market instead of waiting for it. blive u me if all ur indicators shows good sign to enter the market do it but if in one way or the other u have been overtaken by events, just wait their will b next time to trade. with proper MM, u only need to predict correctly 50% of ur trade if u r using a risk reward ration of 1:2, or surpringly only less than 40% of ur trades if u r using 1:3.statistics shows that majority of traders have more winning trades than looses but they still record looses on their account meaning their many small gains are wiped out by few big looses due to poor MM. patience is the best thing a trader can have to wait till his SL or TP is reached .this is not rocket science, its achievable and unlike rocket science it accommodate mistakes .newbie r impacted with this great fear that its next to impossible to break even in fix but I have come to conclution that beside studying n research we need patience n strick MM to make it,which other bussiness can accommodate 6 out of 10 failures or looses n still make a profit at the end of that day or year in that case??. although I will receive critics being anewbie but i have demo traded these and I have seen asubtantial growth for the last 7months after struggling with scalping n day trading with Adozan of indicators for 3 months. yes I have done demo for now 1 yr.i know demo is different from live but we can learn a lot from demo.
kindly don’t mind my English its my fifth language.
Strict money management can certainly help a trader to make some good money in the forex trading business because they are well disciplined in money handling which is critical primary characteristic to be possessed by any trader.
financial side is crucial factor for anyone who doing this business , the trader who can good in administrating of their financial at the business they run then they know the principle of business as businessman , cause successful businessman who can run their business are those can apply money management as strictly in their activity
It is important to have strict money management in order to prevent big loss which can happen in single transaction. If you had strict money management then it will be easier to manage profit and loss in every transaction so it can maximize profit and minimize loss. And also, strict money management will be helpful for traders to create good trading plan which is helpful to realize consistent profit when you can be discipline to follow it well. Strict money management can give maximum profit too beside minimize loss.
I agree that it is important. However, saying to use money management is easy, the not so easy part is knowing how to put it into play, how to find out what works and what doesn’t.
As far as the trading strategy only trading once a week or so, the problem with that picks up if the person finds a strategy that was intended to be a day trader style, and thinks “oh, new trader. should only trade 1 or 2 times a week at first.” And then proceed to lose their entire account, because they didn’t have enough knowledge. Hopefully they figured this out under a demo account, and not a real one.
I think a large part of successful trading is emotion, or rather lack of, so large in fact that only a small part of it falls under Money Management, but in that part, controlling emotion plays a large portion of the overall idea of MM, specifically, greed.
Money management is important , to be strict on your management plan is not easy because market not acts as we see. It can be change any time you need some times changes in it. However your risk and reward management should not affected by it . Your side should be save even if you had nothing to get as profit .
You are right , there are unpredictable moment and also there are many times that unexpectation with the prediction , so with strict of money management plan then the balance of account will more safe and also the account can be grow little by little
Strict on your good money management is one of the most important thing to be successful in trading. Good money management is not the only one thing which determined your result of trading but strict money management is necessary for trading because you will be easier to realize consistent profit when you had proper money management and you can follow it well. It will be useless to create good money management but you didn’t follow it well.