Deposit Management and Capital Management - Page 2
Page 2 of 209 FirstFirst 1234561252102 ... LastLast
Results 11 to 20 of 2083

Thread: Deposit Management and Capital Management

  1. #1
    Trader rinaji's Avatar
    Join Date
    May 2013
    Posts
    3,839
    Thumbs Up
    Received: 207
    Given: 311

    Deposit Management and Capital Management

    Today I made ​​a light topic to discuss, about trade using a stop loss or cut loss. We have too much discussion about the importance of stop loss and risk management, it is 100% true, we must agree that the stop loss and risk management is essential to minimize the risk.

    Do you agree with this...

    No Stop Loss = No Risk Management?

    It is a simple and easy question to answer, maybe we will find many traders who agree with the above sentence.

    But ...., should not be so, money management is not only for the balance in the account, but for all of our capital, (on the account, in payment processor, in the Bank, or in your pocket, and others). At its core is the management of all of your capital.

    I've been trading with risking 100% of deposits, but I have a risk management, yes of course.

    Suppose I have a $ 1,000 capital.
    I have a trade plan with a maximum risk of 10% (of the total capital) per trade. That means I take $ 100 risk for each trade position.

    Well, in general, we will use this way ....
    We made ​​a $ 1,000 deposit. We use a stop loss or cut losses when equity was reduced by $ 100 or 10%. It is a common way. And other people will think that we are really good in applying risk management. Of course...

    So what if we do this way ...
    We split our capital into 10 deposit @ $100. We made ​​a $ 100 deposit, the remainder ($ 900) is stored in the payment processor, or bank, or our pockets. And we do the trade without a stop loss / cut loss. If we get stopped out, then we make a new deposit ($ 100), and so on.
    Perhaps some people may believe we are risking 100%, yes we understand them, because they only see from the management of deposits, not capital management.

    Conclusion: Do not think that risking 100% deposit is mean without risk management. So if you see me getting stop out (usually I trade without a stop loss), you do not think that I am risking 100% of capital. I am only risking 100% of deposits. This could mean only risking 10% of my capital, or 5% capital, because I always split the deposits into multiple parts.

    Another example:
    Suppose I have $ 1,000. and I split into 10 deposits @ $ 100. Well, if I set 10% risk (of the initial balance) per trade. Or $ 10 per trade. This means that we set 1% risk (of total capital) per trade. Equivalent to $ 10.
    10% risk of initial balance ($ 100) = 10% * $ 100 = $ 10. This is if we calculate in deposit management.
    1% risk of total capital ($ 1,000) = 1% * $ 1,000 = $ 10. This is if we calculate in capital management.

    It is a simple way to understand capital management, maybe I'll make a topic about cash flow management in the other thread. I think we should actually do forex trading as a professional business, not just about market analysis.

    Not allowed!
    If you lose, be patient. If you win, stay humble

  2. #11
    Trader
    Join Date
    Jul 2014
    Posts
    150
    Thumbs Up
    Received: 0
    Given: 0
    most of the traders use stop loss or cut loss because it is extremely important to reduce the risk which probably faced by the traders.traders use there knowledge and understanding to become successful and get a better plan to make there trading smooth and best.

    Not allowed!

  3. #12
    Trader
    Join Date
    Sep 2013
    Posts
    179
    Thumbs Up
    Received: 0
    Given: 0
    Trading is a trade we wish to be calculative when doing this business we don't business the marketplace for the sake of trading,we do this industry in response to knowledge and understanding we are having to try this trade,the kinda working out we are having to try this business resolve our good fortune on this industry, this is the reason we wish to have a plan while buying and selling the market.

    Not allowed!

  4. #13
    Trader
    Join Date
    May 2014
    Posts
    602
    Thumbs Up
    Received: 0
    Given: 4
    We should have a good pips calculation with our money management rule. For our each trade how many pips have in our hand and market can go how far this guess is very important for all traders. In this situation money management rule is very important for our capital. We need to trade according to this rule.

    Not allowed!

  5. #14
    Registered user mohabbat's Avatar
    Join Date
    Jun 2013
    Location
    Trading acount
    Posts
    1,506
    Thumbs Up
    Received: 13
    Given: 12
    Well dear mate , your fund managing system very nice. and your attention very pure about the trading volume setting, so this article very wonderful to me and it is reliable and must be applicable. anyway 10% risk not more risk to trader because lot of trader trade by 50% risk so problem on capital management.

    Not allowed!
    Don't loss you hope.

  6. #15
    Banned
    Join Date
    Sep 2013
    Posts
    26,777
    Thumbs Up
    Received: 290
    Given: 50
    Quote Originally Posted by mohabbat View Post
    Well dear mate , your fund managing system very nice. and your attention very pure about the trading volume setting, so this article very wonderful to me and it is reliable and must be applicable. anyway 10% risk not more risk to trader because lot of trader trade by 50% risk so problem on capital management.
    The investments of the trader can only be preserved with the right trading measures, it is not all traders that knows the good measure of working in this market, and this will surely affect them. One thing I know is that the risk of the trader should not be taken with levity , if it is taken care of , then I am sure that traders will get good management.

    Not allowed!

  7. #16
    Trader
    Join Date
    Jul 2014
    Posts
    492
    Thumbs Up
    Received: 0
    Given: 1
    Deposit management is one of the most important things that trader can ever do but the thing is that learning this skill take both time a patience and it is very very difficult to actual master this skill but once a trader has got his management on the role then I think that he will be able to reach height.

    Not allowed!

  8. #17
    Trader
    Join Date
    Sep 2013
    Posts
    6,431
    Thumbs Up
    Received: 72
    Given: 21
    Quote Originally Posted by cozard007 View Post
    The investments of the trader can only be preserved with the right trading measures, it is not all traders that knows the good measure of working in this market, and this will surely affect them. One thing I know is that the risk of the trader should not be taken with levity , if it is taken care of , then I am sure that traders will get good management.
    capital management and Skills for success in this market is of course expensive. It may be not getting 100% in this market, 100% unaware. We need time to analyze the market daily. 1, We will be successful in this market. I am still waiting for my success.

    Not allowed!

  9. #18
    Trader
    Join Date
    Jul 2014
    Posts
    156
    Thumbs Up
    Received: 0
    Given: 0
    Every trader deposit money with proper planning.i think we can not get success by trading randomly but if we have work with proper planning,it would be easy to survive and earn good profit from this field.it is a risky business and we can not get good profit without hardwork.

    Not allowed!

  10. #19
    Trader rinaji's Avatar
    Join Date
    May 2013
    Posts
    3,839
    Thumbs Up
    Received: 207
    Given: 311
    Quote Originally Posted by ngalapreceh View Post
    capital management and Skills for success in this market is of course expensive. It may be not getting 100% in this market, 100% unaware. We need time to analyze the market daily. 1, We will be successful in this market. I am still waiting for my success.
    I pray for your success, we are a unity, we are here to share, this is not just about bonuses, but we found what we were looking for all this time, this forum should be a rewarding place rather than just a place for chit-chat. I think a lot of expert here they might still unwilling to share, I hope we all participate for the betterment of all members here, because we are a unity, I hope someday there is a forum member who became big traders.

    Not allowed!
    If you lose, be patient. If you win, stay humble

  11. #20
    Registered user Sadako's Avatar
    Join Date
    Jul 2014
    Posts
    63
    Thumbs Up
    Received: 0
    Given: 3
    [lang=id]I understand perfectly of what you said.

    Still... a lot of peoples think that no stop loss is only for dumb beginners and it has no risk management.

    But I think there are a lot of swingers ( beside scalpers of course ) who don't put stop loss but do manual cut loss.

    However in your case its about risking 100 % of the balance but not all of the allocated money for trading.

    I think most peoples think that its just tedious to separate the money like that, we ca deposit the whole and limit the loss to 100 % and it means exactly the same.[/lang]

    Not allowed!
    !!!!!! Hehehehehehehe..... !!!!!!

Page 2 of 209 FirstFirst 1234561252102 ... 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
  •