Deposit Management and Capital Management - Page 6
Page 6 of 209 FirstFirst ... 23456789101656106 ... LastLast
Results 51 to 60 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. #51
    Banned
    Join Date
    Sep 2013
    Posts
    26,777
    Thumbs Up
    Received: 290
    Given: 50
    Quote Originally Posted by hero View Post
    Planning is very important in this field.a trader cann't earn safely from this field without having proper strategies.
    A trader can deposit money with a proper plan.we cann't earn without planning.we can safely earn by having a reliable plan and tested strategies.
    This is a great way to secure the investments of the trader, there are many ways to help traders earn money in the market, but there are fewer ways to get the account preserved. This is why traders should limit all the risk they are talking in the market, that is the way to get the best out of the forex market.

    Not allowed!

  3. #52
    Trader
    Join Date
    Aug 2014
    Posts
    251
    Thumbs Up
    Received: 0
    Given: 8
    we should deposit at least 100$ in the trading account and this is a good capital for the newcomers and we should work hard to make it double and we also should take care of our capital because it can be lost in the forex market and we should use tools like TP and stop loss

    Not allowed!

  4. #53
    Trader dkarev's Avatar
    Join Date
    Aug 2013
    Location
    nigeira
    Posts
    3,007
    Thumbs Up
    Received: 19
    Given: 1
    money management is very important in this business if we are thinking of lasting in this business the kinda understanding we are having to do this business determine success in this business when tradsing the market and this is why we need to be patient with the market and not rush our success in this business when trading.

    Not allowed!

  5. #54
    Trader Sascha's Avatar
    Join Date
    Dec 2013
    Location
    Racoon City
    Posts
    3,618
    Thumbs Up
    Received: 67
    Given: 58
    i don't quite agree with this because i saw many traders who never use any stop loss on every trades they opened but they still able to make money with low risk of loss. according to me, it depends on trader's level and understanding. it will make more sense if this apply to beginner who still have lack of experience. totally different from expert or well experienced trader who able to control their risk without using stop loss. yes, some of them even just cut their bad positions if they sure market will move against them without hesitation.

    Not allowed!

  6. #55
    Trader adeshola's Avatar
    Join Date
    Aug 2014
    Posts
    5
    Thumbs Up
    Received: 0
    Given: 0
    It is important to observe below in which cash is quite important for this achievements in our foreign exchange career. While we should business foreign exchange, it is crucial that we should have good cash within our dealing account in various other for all of us to be able to business having nominal risk and also better options associated with superior revenue.

    Not allowed!

  7. #56
    Trader
    Join Date
    Feb 2014
    Posts
    187
    Thumbs Up
    Received: 0
    Given: 0
    The most important management tools of capital management, ordered a stop loss avoids shops of the forex market fluctuation, which sometimes gets lost a large part of the capital that left your position without stopping point for a loss.

    Stop order ensures that the maximum loss you may lose from the capital is the only amount Mahddth in order to stop the loss

    Not allowed!

  8. #57
    Trader
    Join Date
    Feb 2014
    Posts
    97
    Thumbs Up
    Received: 1
    Given: 0
    Quote Originally Posted by eman66 View Post
    The most important management tools of capital management, ordered a stop loss avoids shops of the forex market fluctuation, which sometimes gets lost a large part of the capital that left your position without stopping point for a loss.

    Stop order ensures that the maximum loss you may lose from the capital is the only amount Mahddth in order to stop the loss
    when the market has fluctuated indeed we need a very good money management,, because the current forex market can not be analyzed properly and sometimes misses the strategy that we use so much of our planing,, if we do not have good money management then we do not will be able to defend the capital we

    Not allowed!

  9. #58
    Trader
    Join Date
    Sep 2013
    Posts
    2,733
    Thumbs Up
    Received: 45
    Given: 32
    Quote Originally Posted by Didiandri View Post
    when the market has fluctuated indeed we need a very good money management,, because the current forex market can not be analyzed properly and sometimes misses the strategy that we use so much of our planing,, if we do not have good money management then we do not will be able to defend the capital we
    Irrespective of the forex market movement and market conditions it is always advisable for the traders that they should implement strict money management in each and every trade such that they can be able to grow their capital which is the main asset that helps in creating more assets.

    Not allowed!

  10. #59
    Trader
    Join Date
    Sep 2013
    Location
    Sab ke dilo mein
    Posts
    1,111
    Thumbs Up
    Received: 7
    Given: 4
    This sort of methods do work for some traders who trade high impact release and put all their account equity on one trade. Suppose they have two accounts and they set two limit orders both sides specially when there is big deviation is expected and price move 50-60 pips movement in seconds of release then putting entire capital online works sometime but you have to be accurate as there is lot of movement ahead of release and price can take your stops both way and hence double loss which will really hit your account.

    Not allowed!

  11. #60
    Registered user
    Join Date
    Aug 2013
    Posts
    2,526
    Thumbs Up
    Received: 15
    Given: 56
    Quote Originally Posted by Ashviniurs View Post
    Irrespective of the forex market movement and market conditions it is always advisable for the traders that they should implement strict money management in each and every trade such that they can be able to grow their capital which is the main asset that helps in creating more assets.
    using money management in trading is the most important part in this business so the money management in this trade then this would make us be successful in the trade and I believe in this business will never be easy to implement money management if we do not try to do this trade to continue to learn money management with discipline in this trade

    Not allowed!

Page 6 of 209 FirstFirst ... 23456789101656106 ... 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
  •