Money Management Vs. Risk Management - Page 227
Page 227 of 231 FirstFirst ... 127177217223224225226227228229230231 LastLast
Results 2,261 to 2,270 of 2304

Thread: Money Management Vs. Risk Management

  1. #1
    Registered user Ruhul Amin's Avatar
    Join Date
    Jan 2015
    Posts
    31
    Promo (¢)
    315
    Thumbs Up
    Received: 6
    Given: 1

    Red face Money Management Vs. Risk Management

    A good trader always follow money management you see. But one another thing is very important is risk management. Also some new trader do not understand the different between money management and risk management. So today, I will give some theory on this topic.

    Definition:
    Money Management Refer to you manage your money. How you spent, How many time, How long etc. Actually the divided of your time and profit is money management.

    On the other hand, we use risk management to divided our capital in some parts of amount. It also refer with %. Also we refer it, How much we want to gain against we take the risk.

    Main Idea:
    The main idea of Money Management is really very large. Actually It include all the thing of forex success. But Risk management is just a part on Money management.

    So we can say,
    Money Management = Risk Management + Timeframe + gain pips (price movement) + loss management.

    On the risk management theme, we can see, we take risk some % on our capital. Money management keep the risk on that % we make part from the amount of risk.

    Example:
    The proper method to describe money management and risk management is, how we control our money. Let’s see, we invest 1000$ in standard account. We take the 2% risk for one trade. That means we take 20$ risk for per trade. Now think about it, How much you want to gain against 20$. I think 30$ is good in ratio of 1:1.5 (Risk Return Ratio).

    I think now you clear about it because both are not same. Risk management comes before money management but it’s a part of money management also.

    Not allowed!

  2. #2261
    Trader
    Join Date
    Aug 2015
    Posts
    12,198
    Promo (¢)
    8,100
    Thumbs Up
    Received: 121
    Given: 24
    Quote Originally Posted by ola4real View Post
    The stop loss is the main element who will let forex traders to trade well. Forex traders who are trading well are the traders who knows how to trade with the use of the money and risk management, and are using a solid forex strategy with it. Forex traders who are trading with the stop loss will always use it to accept their losses before it will go wide to the extent that it will ruin all the forex investments of that trader.
    stop loss is really important whenever we do not use sl what happen? we lose all or big so here we have just sl which can save us, which can make us able to earn something good, if we have secure account we can earn but if our account is not secure how we can earn, so relax mind is also necessary here and for this we need to use management we need to use sl because we know with this we cannot lose big or all

    Not allowed!

  3. #2262
    Trader
    Join Date
    Feb 2018
    Posts
    2,112
    Promo (¢)
    870
    Thumbs Up
    Received: 11
    Given: 5
    Quote Originally Posted by naeem555 View Post
    stop loss is really important whenever we do not use sl what happen? we lose all or big so here we have just sl which can save us, which can make us able to earn something good, if we have secure account we can earn but if our account is not secure how we can earn, so relax mind is also necessary here and for this we need to use management we need to use sl because we know with this we cannot lose big or all
    i think if we have good analysis if we know where market will go we can trade without sl also. because there are two options we can close manually in some loss of target? or we can make perfect orders with best analysis to avoid loss also. but this is possible if we have good experience if we have good market knowledge and this is possible after demo account practice

    Not allowed!

  4. #2263
    Rookie ola4real's Avatar
    Join Date
    Mar 2018
    Posts
    7,303
    Promo (¢)
    6,720
    Thumbs Up
    Received: 44
    Given: 20
    Quote Originally Posted by naeem555 View Post
    stop loss is really important whenever we do not use sl what happen? we lose all or big so here we have just sl which can save us, which can make us able to earn something good, if we have secure account we can earn but if our account is not secure how we can earn, so relax mind is also necessary here and for this we need to use management we need to use sl because we know with this we cannot lose big or all
    Forex traders should know that all the elements of forex trading are important, and the forex traders who are patient with the use of their solid forex strategy and use the money and risk management with it are going to do well in their trading. It us sure that the forex account of that trader will be so secured and the forex trader will have the ability yyo make good income out of what we are doing.

    Not allowed!

  5. #2264
    Rookie
    Join Date
    Aug 2017
    Posts
    7,822
    Promo (¢)
    0
    Thumbs Up
    Received: 51
    Given: 96
    You have got to manage your risk and become careful. Success depends on the trader who has the both and has always made use of them, You shouldn't be so impatient with the market, but instead, learn to be patient and most of all consistent, that is so much important, use money and risk management at the same time and not trying to compare them, because when you don't use them correctly, they could ruin your trading account.

    Not allowed!


  6. #2265
    Rookie
    Join Date
    Nov 2017
    Posts
    5,253
    Promo (¢)
    0
    Thumbs Up
    Received: 34
    Given: 87
    Money management is important, know what you should do and then what you shouldn't. Taking risks is so much common, in as much as you want to become successful trader, you will engage in risk trading, what you should also make sure you do is that the risk been taken should be well calculated, because money and risk management isn't meaningful when not calculated.s

    Not allowed!

  7. #2266
    Rookie Lyon's Avatar
    Join Date
    Jul 2017
    Posts
    9,305
    Promo (¢)
    0
    Thumbs Up
    Received: 81
    Given: 114
    Quote Originally Posted by ola4real View Post
    Forex traders should know that all the elements of forex trading are important, and the forex traders who are patient with the use of their solid forex strategy and use the money and risk management with it are going to do well in their trading. It us sure that the forex account of that trader will be so secured and the forex trader will have the ability yyo make good income out of what we are doing.
    And you know what, this are different elements in trading, so they are used differently and it means that the use of them generally will help the trader become profitable. So, when the trader starts comparing and then using the them differently, I think from there they will be creating more space for them to loss their money.

    Not allowed!

  8. #2267
    Rookie Toyen's Avatar
    Join Date
    Apr 2018
    Posts
    6,580
    Promo (¢)
    7,860
    Thumbs Up
    Received: 38
    Given: 13
    Quote Originally Posted by Real View Post
    Money management is important, know what you should do and then what you shouldn't. Taking risks is so much common, in as much as you want to become successful trader, you will engage in risk trading, what you should also make sure you do is that the risk been taken should be well calculated, because money and risk management isn't meaningful when not calculated.s
    The most important things that i know that are crucial to the success and survival of traders is the money and risk management with the trading strategy of the trader. When these two are confirmed well and in good measures, there is nothing that will shake the success of the trader. One thing again is that the traders that want to use good money and risk management should go for 5% money management and risk to reward ratio of 1:4.

    Not allowed!

  9. #2268
    Rookie
    Join Date
    Aug 2014
    Posts
    6,360
    Promo (¢)
    3,000
    Thumbs Up
    Received: 56
    Given: 34
    Quote Originally Posted by Toyen View Post
    The most important things that i know that are crucial to the success and survival of traders is the money and risk management with the trading strategy of the trader. When these two are confirmed well and in good measures, there is nothing that will shake the success of the trader. One thing again is that the traders that want to use good money and risk management should go for 5% money management and risk to reward ratio of 1:4.
    We most importantly need these two things in strong force to make sure our trading is smooth and we get the desired output. Protecting our account balance is not just about following risk management. If we dont have a strategy but follow risk management then we will still be losing continuously. Our strategy should be along with a powerful plan for best results.

    Not allowed!

  10. #2269
    Rookie
    Join Date
    Nov 2017
    Posts
    5,253
    Promo (¢)
    0
    Thumbs Up
    Received: 34
    Given: 87
    Quote Originally Posted by Toyen View Post
    The most important things that i know that are crucial to the success and survival of traders is the money and risk management with the trading strategy of the trader. When these two are confirmed well and in good measures, there is nothing that will shake the success of the trader. One thing again is that the traders that want to use good money and risk management should go for 5% money management and risk to reward ratio of 1:4.
    That is accurate, when a trader isn't making use of the two money and risk management, I don't think they can ever get close to success, it ain't something a trader should joke about as the market is risky and we don't know for sure what will be of the trades we have taken, so it is more better we always use adequate risk management and money management all the same.

    Not allowed!

  11. #2270
    Rookie
    Join Date
    Aug 2017
    Posts
    7,822
    Promo (¢)
    0
    Thumbs Up
    Received: 51
    Given: 96
    One should know that there is no need trying to compare the two of them, in such a way that they are all different and so the trader should know how they can make use of them in trading, having the strong ideas of making use of the two of them in trading will surely make a good trader get to be be able to handle the market properly. Money and risk management should never be joked with.

    Not allowed!


Page 227 of 231 FirstFirst ... 127177217223224225226227228229230231 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •