Forex traders: Money management principles

Forex traders

Trade with sufficient capital

Forex traders, tried without sufficient capital.

Capital market is limited. not only affected merchants, always looking for minimal losses on the realistic negotiating point but often also out of the game for trade are taken until you can get any sense of the negotiations about the method (s) or schema.

Exercise of discipline

The discipline is probably one of the words, mostly in excess Forex Education used in. However, despite the cliché, discipline is always the most important behavior that can be controlled to become a profitable trader. Discipline is the ability to plan your work, and your work schedule.

It is the ability to give, its time to develop without a hurry just take out of the market, because you do not feel comfortable with the risk. The discipline is also the possibility, more use of methods and models even after losses. All they can do to the degree of that discipline to cultivate, should any world renowned operators. (Forex traders)

Benefits you-to-risk ratio

Then the victory shows needed a potential risk, reward, and the relations to achieve the balance in a trading system.

(In PIPs) The risk / earnings ratio and average of WINS required balance (%)

40/20 (2-1) = 67%, 40/40 (1-1) = 50%, 40% = 40/60 (1-1.5).
40/80 (1 + 2) = 33.5%
60/20 (3-1) = 75 percent.
60/60 (1-1) = 50%
60/90 (1-1.5) = 40%,
60/120 (1-2) = 33.5%

IMPORTANT NOTE

Never risking more cores in a trade, then will do. No sense risking only 10 to 100 pips. Why? See the example below.

Take the profit margin (PIP): 10
use stop or pips at risk: 100

100 pips you earn 10 times what saves.
Lost only once and not use to pay back!

This type of trade makes no sense and you will lose the long-term guarantee!

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