If you are Searching on Google either from outside or domestic sources, then most likely you will find one thing in common: money management is very important for a trader.
But the facts in the field show the opposite; traders understand the importance of money management, but there are still many who do not practice it in trading. Many see it in one eye. The results are clearly visible; many traders who have for many years online trading forex but still not get the appropriate results, roughly not trading for living.
Together with the discipline factor, money management becomes the determinant of success or failure of your trading later.
What To Learn?
There are some key things you need to understand, learn, and practice in money management. These include:
1.Understand money management
You must understand what it is money management forex trading, the importance of this factor, and the risk if not done. If you practice from the beginning with discipline, you will most likely go forward. Conversely, if not, you can be spinning and not reach the goal and even suffered a significant total loss.
2.How to calculate money management trading
Learn how to calculate good money management trading. We provide basic materials that you can learn such as; position sizing, risk per trade, risk – reward ratio, compounding, and so forth. It also prepares some basic models of capital settings that you can apply.
In the future, you will be able to develop your own money management model in accordance with each character.
Actually there is no standard that you must undergo when using money management. As long as you understand the risks, fit to run it, and get the corresponding results according to each standard, then that is the money management model that is suitable for you.
Discipline, together with money management holds a very important role in forex trading. You are required to execute trading plan, use trading system, and run money management plan with discipline.
In the practice of trading later, chances are you will be interested to get big profits multiply quickly. Especially if your mindset still think that forex trading is a quick way to get rich. This can be minimized from the beginning by implementing a strict discipline.