Whether you are a seasoned trader or new to FOREX, without a good money management it will be hard to ever make a dime. Good money management will be out a great trading system any day. Without knowing how to keep losses to a minimum will only jeopardize you’re trading efforts even if you have more winning trades than losing trades.

One of the worst mistakes traders make is trading without sufficient capital. This does not mean a trader has to have a lot of money to trade with, but enough to handle the movement in the market. The trader with limited capital will always be a worried trading looking to minimize losses beyond the point of realistic trading.

A good rule to follow is never risk more than 2% to 5% of your FOREX trading capital. Too many traders open mini accounts and begin trading heavily and end up margining out their accounts in a few months, if not a few weeks. Fore example, if a trader opened a mini account for $5,000, they should never trade more than $1 per pip. This way if a trade goes bad, the trader suffers a minimal loss.

Exercising discipline and following a specific trading plan is one of the most important aspects in FOREX trading. Discipline is also the ability to continue to trade your system even after you have suffered a loss. Emotional and revenge trading can easily wipe out entire accounts. Sometimes it’s good practice to ignore the dollar amount in a FOREX account and interpret the number of trades in pips only.

Think backwards when trading the FOREX market. Instead of trying to make money learn how to protect what you already have. If in the event that a trade does not develop in a reasonable amount of time or the market begins to form an opposite setup, you should employ the strategy of cutting your losses short to protect and preserve your capital.

Always use a stop-loss when trading. This will stop your position when the market moves too far against your position. Save your money to trade another day or on another trading setup. Too often traders are convinced of where they believe the market is going and lose their sense of reality and begin to trade on hope. They remove their stop-loss and hope the market will turn around, only to lose more money.

Trade light and never risk too much per trade. When in doubt of a trade, stay out of the market and wait for the trade to come to you. Use a system and follow the system without breaking the rules. Traders who are consistent and follow a definite plan are the ones that make money in the FOREX.



By: Timothy Rohrer

Apakah hukum FOREX(Foreign Exchange) atau pertukaran matawang asing? Dengarkan penjelasan Ust Zaharuddin Abd Rahman … Ust Zaharuddin Abd Rahman

Forex money management is the hardest part of forex trading and most traders simply make errors that doom them to failure. Here we will look at how understanding the 80 / 20 rule and using it in your trading system can make you bigger profits with less risk…

The 80 / 20 rule is simple and states:

That a small number of causes (20%) is responsible for a large percentage (80%) of the effect. The principle was named after the Italian economist Vilfredo Pareto, who noted that 80% of income in Italy was received by just 20% of the population. The value of the Pareto Principle in life and forex trading is – it tells you to focus on the 20 percent of your trading that really matters.

Most traders simply trade too much and the 20% that matters are really just the high odds trades – get rid of the marginal and low odds trades and trade high odds set ups only.

The fact is many traders think the more they trade the better and the more chance they have of enjoying currency trading success. Most try trading the market noise and try forex day trading or scalping – but they are doomed to failure and get wiped out. Trading profits are not correlated to how often you trade, as you are only judged on being right with your trading signal.

If you trade 100 times or twice all that matters is the amount of money you put in the bank from your market timing.

I know traders who trade just a few times a year and make somewhere between 100 – 200% just simply because they wait for high odds trades, hit them and hold them.

Trading less, is more time efficient and more profitable.

Look at any new traders account and they will be over trading and if you make the mistake of taking marginal trades you will lose.

Money management is all about protecting the account equity you a have and if you focus on high odds set ups only, you are going to increase your profit potential overall.

The 80 / 20 rule works in forex trading just as it does in all areas of life and if you use it in forex trading you will focusing on making money and that at the end of the day, is what forex trading is all about.

So think about it, apply it, watch your profits soar and your account equity risk decline and get on the road to currency trading success.



By: Kelly Price

Many who attempt to trade currencies on their own never realize that they were scalped by someone using a forex autopilot system robot. Currency trading is ordinarily characterized by complicated technical analysis. The variables to ponder often can seem infinite. A single human mind is only capable of so many calculations per second and can not compete against today’s cutting edge software.

Brute force calculating ability is not the only advantage of software and computer based trading. A forex autopilot allows for the removal of your emotions from the trading formula. Oftentimes, a great strategy proves moot when the trader deviates from it due to sudden hunches. In some instances fear tends to inhibit purchases at the most opportune time. In others, greed prevents taking a profit when all the objective signals dictate that a sell is in order.

Robotic trading prevents these emotions from foiling a good strategy. It enforces discipline disallowing deviation from the core strategy. Many traders end up thanking their robot profusely for preventing an emotional driven error. A strategy is only as good as your ability to execute it and to identify when the brief window for execution arises. A forex autopilot addresses both of these facets with its discipline and speed of calculation and execution.

Another arena in which a forex autopilot proves beneficial is money management. Whereas your trade strategy relates to which currency you buy or sell, your money management thresholds dictate how much you can risk on that given trade. Many seasoned professionals suggest that you risk no more than three percent of your portfolio on any one trade.

Effective money management allows you to stay in the game even after a few trades go against you. A smart trader knows this is always possible for any given group of trades. However, they are confident that their strategy will prove profitable over the long run. Effective money management allows for your strategy to prove itself over the long haul and prevents your account from blowing up after one poorly timed trade.

Humans are prone to exuberance and when an especially appealing trade arises they are tempted to deviate from their risk management parameters. A forex autopilot disallows that. It takes control and ensures your money management policies are enforced sometimes in essence saving you from yourself. A robot knows no greed nor does it experience any fear. Elimination of these emotions helps you to both adhere to your risk management thresholds as well as stick to your core trading strategies.

The forex markets are located throughout the world allowing for a wide range of potential trading hours. Many who trade forex are able to enjoy a lifestyle where they are able to select their own work hours whether it be early in the morning or late at night. This flexibility often proves family friendly and a sense of personal freedom. Forex often proves very attractive to those unable to conform to the typical nine to five regimen.

A forex autopilot system robot can be your secret weapon when it comes to combat in the currency trading arena. Some choose to trade on their own whims and arbitrary hunches. Others use science and technology to address the seemingly chaotic markets. The results often speak for themselves.



By: Bill Gatton