Money Management in Forex

[Ahmed Solaiman]

its a fine reply with good message ,

 

[GoAhead]

Money management is one of the important technique to be learnt along with risk management

 

[Tumescent]

Using stop loss and take profit orders are the best ways I can think of while trying to minimize risks and losses. The second best thing is not using an amount to trade that I would need for my day-to-day expenses.

 

[Paulsy]

The stop-loss and take-profit features are designated to protect your trades. So, no matter how confident you are, it is always better to use both orders, especially in such a dynamic market. This also helps you control any emotions that can be triggered while trading. These emotions, if not well managed, can lead to bad trading decisions. Therefore, instead of worrying about how the trade is doing, you can set both SL and TP levels and relax.

 

[Ahmed Solaiman]

Money management is one of the important technique to be learnt along with risk management

what you thing money management and risk management are same issue ?

 

[Esha.J]

Most traders say that your target size should be at least the same size as your stop loss, if not larger. But choosing a target also depends on the deal setup you find. When you find a long position, you should be able to find the next level of resistance that might stop the price from rising. This level will be your target. So when you find a bear trade setup, you should be able to find the next level of support that might stop the price from falling. This level will be your target. Then, if you see that your target will be less than your stop loss, you should ignore the position and you should wait for another trade setup.

 

[tuxedo69]

Spot on Paulsy.

 

[FahadMd]

Most traders say that your target size should be at least the same size as your stop loss, if not larger. But choosing a target also depends on the deal setup you find. When you find a long position, you should be able to find the next level of resistance that might stop the price from rising. This level will be your target. So when you find a bear trade setup, you should be able to find the next level of support that might stop the price from falling. This level will be your target. Then, if you see that your target will be less than your stop loss, you should ignore the position and you should wait for another trade setup.

its a very fine reply with good information. thanks for your nice post

 

[S.Luke]

Which money management strategy is the best for a beginner trader in forex and what are the reliable strategies suitable for it?

 

[JimmyChoo]

as a beginner it is really difficult to maintain good money maangement due to low trading experinece , so first of all need to increase trading experience.