The Objective of Money Management is
- To Improve your Trading skill
Common Mistake in every trader is wiping out their account. The reason for this they have under estimate the Success rate of their Strategy. Given the fact you are new discipline on trading is not one of your virtue.
Why Filipino belong to the 90% that fail in forex trading? because they loose so much that hurt them. wipe out account is the most painful normal scenario when you are developing your skills. the joy of profiting from trades where devour by the pain of loosing Big. Loosing so much that you dont want to try again and improve where you have failed.
This is where Money Management will help you. It will keep you on track that even you are loosing Money Management will give you chance to fight back, pick up the pieces and not to do your mistakes again. In Forex it take skills to succeed and this can only be done through experience. How can you develop your skill if your account is wipe out?
However because of the limitation of trade size that you are going to trade, you will find that it will take long time to build. Imagine having $500 Dollars account your ideal trade size is only from 10 cents to 30 cents per pip.
In the video below I am going to show you how to Double your allowable trade size without Hurting your Account if you loose the trade EX.
Based on the Chart above
Why Filipino belong to the 90% that fail in forex trading? because they loose so much that hurt them. wipe out account is the most painful normal scenario when you are developing your skills. the joy of profiting from trades where devour by the pain of loosing Big. Loosing so much that you dont want to try again and improve where you have failed.
This is where Money Management will help you. It will keep you on track that even you are loosing Money Management will give you chance to fight back, pick up the pieces and not to do your mistakes again. In Forex it take skills to succeed and this can only be done through experience. How can you develop your skill if your account is wipe out?
However because of the limitation of trade size that you are going to trade, you will find that it will take long time to build. Imagine having $500 Dollars account your ideal trade size is only from 10 cents to 30 cents per pip.
In the video below I am going to show you how to Double your allowable trade size without Hurting your Account if you loose the trade EX.
Based on the Chart above
- You are allowed to trade only at .3 or 30 cents per pip with tolerable pips you can risk of 42
- In the video you can trade .6 or 60 cents per pip with tolerable pips to risk of 42 without hurting your Account. meaning you are still using money management system
IMPORTANT
above chart is design based on my way of trading.
above chart is design based on my way of trading.
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