What is the function of money management in
forex? Money management in forex trading is a very important thing that should
not be ignored by a novice trader . There are so many novice traders has influenced by the feeling of wanting to
succeed quickly or want to gain wealth through forex overnight then they forget
one thing that very important factor in forex trading that is money management
.
If you ask an expert trader about what you need
to learn when you want to learn forex . He would say Money management or often
called the Capital Endurance is the main thing you should learn . Basically Money
Management makes a trader have a power to survive from the cruel forex market.
When trading in the forex market you will
definitely feel how hard or how difficult it is to conquer the forex market .
Even a professional trader will certainly feel the loss moment even once though
in they have so many experiences and have been very understanding about the
forex market so well. So we have to go back again to the principle that "
No one can guess the market " . The principle is true, Are there anyone
traders can guess where the forex market will go? The Answes is No. so it would
be better if you as a beginner not trying to get rich quickly and hold your
feeling by yourself that already
overflowing.
Money Management is a means or method used by a
trader to survive in the forex market from playing their own margins Balance.
In the above principles we already know that losses in the forex market is a
natural thing . But we need to know there is a way to restore our capital and makes
us to profit eventhough we have experienced some loss by using a method called
Money Management.
There are many methods of money management that
are used by traders and even the already widespread on the Internet but there
are laws that must be followed and should not be violated by a trader if he
wants to make a consistent profit or want to survive for a long time in the
forex market which should never trading by using more than 5 % of your capital
. The 5 % figure is very important and you should always remember in the trade
as it will determine how much power you have to survive in the forex market .
Once you get carried away by the emotions of money management system that you
apply in the trade will collapse and give huge influence in your trading
capital .
Perhaps you will think is this a simple thing
and means nothing but a lot of newbie traders who lose their money in forex
because they think that money management is simple and does not need to giving
plenty of time to learn it. Try to deepen your knowledge of money management.
Trust me you will know how much influences of this thing in your trading.
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