Capital Forex
The first rule not to take risks in one deal for more than 2% (maximum 3%) of the Deposit. That is, after, say, 10 losing trades you will lose 20% depot. But to compensate for the losses you have to do is not 20%, and 25% of the Deposit decreased.
If the loss will be 50% of the original, the trader must make 100% profit on the new Deposit, which will be in 2 times less than the primary. Therefore, many experts are of the opinion that losing 50% Deposit, the trader is actually impossible to restore the original balance. In addition to the technical reasons described above, it is necessary to consider the psychological factor.
The second rule of money management Forex stick to the ratio of expected profit:loss 2:1 or 3:1. Then the statistics will be on our side and total trade are positive.
Never trade for all the money. At the default leverage of 1:100 and the price moves against us by 2 or 3 points we already have a drawdown in the amount of 2% of the total depot.
The third rule smart money management - always use stop orders. And no matter what you are constantly in front of the monitor and observe the situation. When important news broker often increases the size of stop orders, making it impossible scalping (if you use this trading strategy). Sometimes it may disappear connection to the Internet or will simply turn off the electricity. And, of course, a strong sudden movements without explanation momentum against our open position has not been canceled. All this speaks in favor of placing Stop Loss and Take Profit or at least the latter.
The fourth rule - if possible, make diversification. This means that the trader can operate in different markets (currency pairs) with different assets. For example, it is not necessary to rely only on EURUSD - buying euros on this pair, look for sell signals on EURJPY. This is optional, but the essence of this rule is to reduce trading risks when working with multiple tools. However, instruments (currency pairs) should not be too much, otherwise the trader can lose focus and get lost.
The fifth rule - decide the degree of risk in trading and stick to this plan. If you want to trade on a more aggressive strategy - create another account and work on it.
And the last, the sixth rule intelligent management of your funds to stick to the clear algorithm of opening/closing positions, that is your trading system. Opening of the transaction are, when you see one primary and at least one additional signal. Record the details of each transaction: the price of entry, at what rates close position, separately for profit and loss, lot, etc.
Opening position against the trend and in the flat - do not tighten over time, the market may make a sudden strong movement against you.
So you've learned the basic rules that will help you keep your capital Forex. The increase in the Deposit remains a matter of technique (the chosen trading strategy). Using the above rules money management Forex, you turn from gambling, which is quite a lot among beginners, experienced professional stock speculator.
So you've learned the basic rules that will help you keep your capital Forex. The increase in the Deposit remains a matter of technique (the chosen trading strategy). Using the above rules money management Forex, you turn from gambling, which is quite a lot among beginners, experienced professional stock speculator.
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