Without good quality strategy, Money and risk management is USELESS - Page 76
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Thread: Without good quality strategy, Money and risk management is USELESS

  1. #1
    Trader Lyon's Avatar
    Join Date
    Jul 2017
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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.

    Not allowed!

  2. #751
    Join Date
    Aug 2013
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    With good strategy and money management the trader will be able to survive in the market for long time and will be able to make good and continuous profits but without them the trader will waste his time and will lose his money easily, so the trader needs to follow the right rules to be able to enjoy trading and making of money at the same time

    Not allowed!

  3. #752
    Join Date
    Oct 2019
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    Good morning I am with you capital management is more important than capital and I will give you an example if we say with me 1000 dollars and you open an order of 10lot means 100 dollars here the loss is after 10 points and this is dangerous
    But if I had $100 and worked strictly managing the capital, the contract would be 0.01 cents, so the loss would be after 1000 points, which would be almost impossible without compensation and an order lying with the trend

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