Without good quality strategy, Money and risk management is USELESS - Page 3
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Thread: Without good quality strategy, Money and risk management is USELESS

  1. #1
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    Without good quality strategy, Money and risk management is USELESS

    In forex trading we are been taught of money management, of course!, we need to have good money management so that we don't loss all our money in the market.

    Money management is the rightfully investing of the amount of money you can afford losing. Which means, if you have $10,000 to your name, meaning that is all the money you have, you should be wise enough not to invest all, that means, invest 10- 40 percent of it, which is $2000-$4000. You still have some money left. That way, you don't loss your shirt.

    Risk management is risking the right amount of money on each trades. Some will argue that you don't take more than 2 percent risk per trade. That means if you have $1000 capital balance, if you are to buy EURUSD, your stoploss should not exceed a total dollar value of $20 which is 2% of $1000.

    So when you loss even 5 trades on a role, you only lost 100 because $20x5=$100. So you loss less right?

    But all those above illustration on money and risk management are all useless when you don't have a strong quality trading concept/strategy and discipline.

    Therefore my message is that, we need to pay more attention to mastering and learning a good trading strategy and discipline because then we can reduce the losing trades we will take and that will help our money and risk management protect our account.

    Because when your strategy is wack and you lack discipline, you will only loss slowly but surely you will loss all funds.

    Hope this helps change the way we trade.

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  2. #21
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    Yes it is truth about the market that with out good strategy in the trading and with out good risk management we never success in the trading and it is just the time wast in the market i think we need to make the better and fruitful strategy in the trading which will help us in the trading to find the trend of the market and help us to get good result and at the same time we mange the risk factor well in the trading.

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  3. #22
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    yeah , risk will be available for us when we have something to invest and get profit also the the better approch or strategy play a vital role in this business because those who run without any strategy can be knocked out in initial stages of the game. good qualities of a business can fly any trader from earth to sky.

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  4. #23
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    It does not matter we are new in this market or doing trading since many year's risk is the part of the trading and even the professional have to take risk in their trading to earn money, its not that business where there money will come from sky automatically without taking any risk. But here we can reduce the size of risk which can help us a lot to understand the consistent profit subject here.

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  5. #24
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    The strategy is very vital in the trading because when you have the right strategy then you use you skills and knowledge of the trading and know the way in the trading how you will move forward and how you will makes the profit in the trading then the important is that you have mange the risk well in the market and stay long time and analysis the market well

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  6. #25
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    Good write up there,indeed without good strategy you can hardly go far in this business.Even if you are being given the sum of one million dollar to start with in forex,yet without good strategy it is very possible to lose all of it.That is why it is good for a beginner to start with the demo aspect and then read a lot of articles online on how to succeed in forex trading before taking the risk of investing hard earned money.

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  7. #26
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    If you have no quality Money management skills , you will just end up losing thats for sure but you have to also be careful of what is right and what is not be ready to put up with a lot of technical and fundamental analysis, 0% of money management is key , how ever there is also the other 60% of market analysis, I have seen people lose because they could not handle the management part of it and these baring in mind that its a chance to where most people balance so that they can pick something

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  8. #27
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    Without a good quality strategy and money and risk management our trading in the market will be useless because we can't make good money without this basics for us to trade and make money consistently we need a good strategy, money and risk management this are the basics we need in order to trade and succeed in this business.

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  9. #28
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    Any trader that wants to make money from the market will have to learn and master the business. We might think that we can make really fast amount of money from the business. But it does not always happen that way,any one who wants to make money from the market will need a solid trading strategy and a good discipline. Thus having money and risk management is still good as so long as you have a good trusted strategy.

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  10. #29
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    Yes I agree with you. To have a good strategy is more important than having a good money management. Because the loss will always end your account even if you have a strict management of the capital. The good thing is to have a good strategy and good money management as well.

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  11. #30
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    Quote Originally Posted by soufyane bz View Post
    Yes I agree with you. To have a good strategy is more important than having a good money management. Because the loss will always end your account even if you have a strict management of the capital. The good thing is to have a good strategy and good money management as well.
    there are two parts of trading strategy, one part is that analysis means some use of technical and fundamental second part is that use of some money management, both things are necessary in trading we all should use it and make sure that you have both already practiced and learned perfectly, quality of both should be good and remember without one of them we can not earn professionally

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