What is moneymanagement? - Page 3
Page 3 of 99 FirstFirst 12345671353 ... LastLast
Results 21 to 30 of 985

Thread: What is moneymanagement?

  1. #1
    Trader Sixteen's Avatar
    Join Date
    Sep 2015
    Posts
    12,155
    Thumbs Up
    Received: 141
    Given: 68

    What is moneymanagement?

    WHAT IS MONEY MANAGEMENT?

    Newbies looks on the money management in a confused manner when it's been discussed. The truth is that every trader must pass this stage in forex business. Sometimes you wonder why money management is been talked about in forex business. It's not bad you wonder about this in fact you have every right to wonder why many experienced trader will tell you about money management.

    The truth about surviving in forex is that you must learn to manage what you have to get what you dont have. The funny aspect is that we practice money management in our daily life even without noticing and yet we keep wondering what is money management. .

    Right now let's discuss some fact.

    If you walk into a restaurant that sells a plate of food for 10$ while you have 10$ at hand, what will you do?. Simple you get to introduce money management. It will be foolish to spend your whole 10$ on food and come back empty handed with no hope of eating another meal. (I would also want you to think about forex with this illustration.) your best bet is to look out for necessary things in that food. You might want to skip meat, that juice that comes with it and go on the real food that will give your belly a full load. Lol by the time you skip this you might eat a 5$ dollar food, get belly filled while avoiding the pleasure of the food and still save up another $5. By doing this you have practice money management.

    So in forex if you have the opportunity to make 100$ with your 100$ capital at once, you know it will be very risky and the best bet you could do is to risk 5 percent of that amount to target some profits. With this you can stay longer in the market and have more chances of making more trades which will give you a good percentage profit at the end of each month.

    SO WHAT'S MONEY MANAGEMENT?.
    In my own definition I summarize money management as the ability to risk too little and target a bigger profitability at the right time with the right strategy.
    It's just simple as that. You don't need to risk huge to make huge profits but know you can still make good profits even by risking little and becoming patient enough.

    TIPS IN SUCCEEDING WITH MONEY MANAGEMENT.

    * Risk little and target bigger
    * be patient
    * know your goals
    * have a trading plan / strategy
    * practice
    * avoid greed and unnecessary emotions.
    * don't look at your daily profit but focus on your monthly success.

    MONEY MANAGEMENT HARD FOR NEWBIES?

    A newbie asked me this question and I started laughing, she was gazing in amazement. While I was laughing was that she recently blew her account and she was now asking me about money management. Forex is risky and if you don't learn by words, you just learn by experience. The truth is that newbies might find it difficult keeping with money management at first but as time goes on they will understand better that greed is a curse and would open their mind to embrace money management. We admire professional traders but it's their ability to minimize their risk have given them the ability to survive and make monthly income here.

    FOR NEWBIES IT'S NOT TOO LATE. Attachment 13842

    As a newbie I know you just have blew up your first trading amount and you feel discouraged but cheer up. All professional traders you see today passed through this stage before they understand that money management is the key to success. Every trader have their own own weakness but it takes discipline for us to focus on our pattern and look out to be profitable at the end. There is hope and the demo is right there for you to build a good strategy and a great money management pattern that will help you succeed. Think about this (winners don't quit).

    MONEY MANAGEMENT MATHS IN THEORY.

    Let your total risk be the times x2 or 3 of your take profits.

    Let's assume you see a set up pin bar and you are hoping it will move bullish.. Calculate your stop loss and target your take profit level of your risk by more. Am sure with this we can survive more longer in this market even when we make few successes we can still become profitable.

    LAST WORD

    I just want to specially thank you for taking some of your time to read about my money management topic. It takes practice to start making it a reality and am sure you will make it if you are determined. This business comes with risk and it will be thoughtful you work hard to minimize this risk and increase your chances of making more profits.

    I would want to see your interaction in threads like this
    http://forum.roboforex.com/threads/6...-while-trading

    http://forum.roboforex.com/threads/9...us-to-big-loss

    http://forum.roboforex.com/threads/4...know-your-risk

    http://forum.roboforex.com/threads/5976-Cut-your-losses

    Thank you.

    Not allowed!

  2. #21
    Trader Senorita's Avatar
    Join Date
    Jun 2016
    Location
    Africa
    Posts
    7,494
    Thumbs Up
    Received: 119
    Given: 73
    Quote Originally Posted by shambca7 View Post
    Forex trading is a very useful business for those trader's who know the value of their trading management in forex market. I know that there are so many trader's who ignore their money management and risk management in account and later they only get regret from their trading results. There is no doubt in it that forex trading is a great opportunity for us but less care of it can make us loser too in this field.
    I do my best to keep practicing money management and indeed am improving on it. It have helped me know that its important so as minimize the risk of loosing out my funds. Money management is the key in forex and if we can practice this money management in our trade, we will experience success on this market.

    Not allowed!

  3. #22
    Trader
    Join Date
    Feb 2016
    Posts
    160
    Thumbs Up
    Received: 3
    Given: 0
    trader should be very good at money management as this is the only way to make the trader to be able to stay longer in the market trading and be making money, but if all the account is risk for single trade, and the outcome is bad, this is not good enough, and the risk management also should be followed, that is talking about the entry point , our risk reward ratio should be justifiable .

    Not allowed!

  4. #23
    Registered user
    Join Date
    Mar 2014
    Posts
    4,225
    Thumbs Up
    Received: 65
    Given: 49
    Quote Originally Posted by better View Post
    trader should be very good at money management as this is the only way to make the trader to be able to stay longer in the market trading and be making money, but if all the account is risk for single trade, and the outcome is bad, this is not good enough, and the risk management also should be followed, that is talking about the entry point , our risk reward ratio should be justifiable .
    Risk management is as important in trading as earning money itself is. The market is moving at all times and one can get to make profits at all times. So if one is skilled and trained, he will always manage to make good money out of the forex market. at the same time he will always make sure his account is well protected.

    Not allowed!

  5. #24
    Trader Sixteen's Avatar
    Join Date
    Sep 2015
    Posts
    12,155
    Thumbs Up
    Received: 141
    Given: 68
    The ability to minimize the risk of loosing is what I see as money management. It's is necessary because it helps us to manage risk as we look on the means to survive and make greater income. If we can work hard and trade with a money management skill we can have a proper means to make good income right in this trade. I manage my funds and trade with a great means which will be helpful to still make profits.

    Not allowed!

  6. #25
    Trader Senorita's Avatar
    Join Date
    Jun 2016
    Location
    Africa
    Posts
    7,494
    Thumbs Up
    Received: 119
    Given: 73
    Quote Originally Posted by Sixteen View Post
    The ability to minimize the risk of loosing is what I see as money management. It's is necessary because it helps us to manage risk as we look on the means to survive and make greater income. If we can work hard and trade with a money management skill we can have a proper means to make good income right in this trade. I manage my funds and trade with a great means which will be helpful to still make profits.
    Every trader out there must know why he needs to trade good because if risk is not properly managed, it becomes very difficult to earn from forex. The very best we can do is to learn on how to minimize risk and work on the means of making profits. With safe money management system, a trader will not only avoid huge loss, they can also make good earnings in the long run trading.

    Not allowed!

  7. #26
    Trader
    Join Date
    Feb 2014
    Posts
    5,556
    Thumbs Up
    Received: 64
    Given: 30
    I see that the money management is the only way we can be able to trade i the market in a very safe and we have to still read about the different news which we can be able to understand and analyse in order to be able to trade with them to help us to predict the nature of the trading .

    Not allowed!

  8. #27
    Trader
    Join Date
    Jun 2016
    Posts
    2,035
    Thumbs Up
    Received: 10
    Given: 5
    Quote Originally Posted by Senorita View Post
    Every trader out there must know why he needs to trade good because if risk is not properly managed, it becomes very difficult to earn from forex. The very best we can do is to learn on how to minimize risk and work on the means of making profits. With safe money management system, a trader will not only avoid huge loss, they can also make good earnings in the long run trading.
    How a trader can trade depends on the level of his skills and experience. Without knowing the basics one cannot trade properly and profitably. i have seen even from experts asking newcomers to follow some strategy and risk management to make money. These advises are out of experience and always in the interest of traders.

    Not allowed!

  9. #28
    Trader
    Join Date
    Feb 2014
    Posts
    5,556
    Thumbs Up
    Received: 64
    Given: 30
    Money management may be one of the best ways in which we can deal with market so all of us may have a good trading strategies to tae with . but also w e have to follow the rules of the money management even if we gave a good strategy to trade with . it will help us keep the capital safe .

    Not allowed!

  10. #29
    Trader Sixteen's Avatar
    Join Date
    Sep 2015
    Posts
    12,155
    Thumbs Up
    Received: 141
    Given: 68
    For me I am very serious when it comes to managing my capital. This is very helpful for me because it will give me room to survive with this business. Money management have been a very great means for me to trade in the right way and as I look to develop, I can earn in the appropriate way by managing up my risk right here.

    Not allowed!

  11. #30
    Trader
    Join Date
    Jun 2016
    Posts
    165
    Thumbs Up
    Received: 0
    Given: 0
    yeah right forex is a very risky business for that money management most important, we must can manage our account welly and strukturly cause if we trading without good management our account well be lost fast, to make good management not difficult but to do it consantly tht very difficult therefore many treders losing their money

    Not allowed!

Page 3 of 99 FirstFirst 12345671353 ... 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
  •