Friday, March 21, 2008

Money management

How to manage your capital money in forex market.

Money management is a way traders control their money flow: in or out of pockets... Yes, it's simply the knowledge and skills on managing a personal Forex account.

Mostly 90% of the new forex traders are failed and going into bankruptcy but the other 10% can survive because of the money management how they use their money in the forex market when trading.Mostly for the newbie their going to loss their money in first three month because dont know how to manage their money in forex market.

It is so important.The main idea of the whole trading process is to survive!
Survival first, and only then making money on top.One should clearly understand, that big traders first of all are skillful survivors. In addition, they usually have deep pockets, which means that under unfavorable conditions they are financially able to sustain big losses and continue trading. For the ordinary traders, the majority of us, the skills of surviving become a vital "must know" platform to keep trading accounts alive and, of course, to make good stable profits.

Here are the simple formula how to manage the money.

  • Always use maximum 10% from the capital money.
  • From the 10% divide it 5/10 trading position to minimum the loss risk.
  • Don't break this rule.Survive first.

1 comment:

Anonymous said...

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