What is Forex Money Management?



What is Forex Money Management?

Money management is the process of managing money which includes expense tracking, investment, budgeting, banking and taxes. It is also called investment management.

There is a method that all successful traders use and it’s no secret. It’s called Money Management

Money Management Many traders like to focus on the profit aspect of trading, thus they spend a lot of effort to master fundamental analysis and technical analysis. Yet they tend to neglect the loss aspect of trading, which is just as important. One of these most important concepts is that of capital preservation. Without trading capital, your account will be closed and you cannot trade. Hence, a money management strategy that allows you to live to fight another day is vital to the survival of any trader.

We have some forex management tips such as

  • Quantify your Risk Capital
  • Avoid Trading Too Aggressively
  • Be Realistic
  • Admit When you are wrong
  • Don’t Trade on Tilt
  • Respect and Understand Leverage
  • Think Long term

All aspects of trading, what works best will vary according to the preference of the individual.

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