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Proper risk management is the holy grail of forex trading

{}Posted in2023/2/25 21:30:18 | 9Browse

Do you have a lot of money even if you burn some to keep warm? cashback forex dont anyway. Whether its Forex, stocks or futures or any other financial product, there are 100 ways to make a profit. Personally, one of the most basic and important methods rebatesforexbroker proper money management. Money management is really about fxrebatecentral management for each trade, and that risk is a risk you forexrebatecommission take. A is an aggressive trader who takes a 10% risk each time. First best forex rebate company 1000-100=900 Second trade: 900-90=810 Third trade: 810-81=729 Fourth trade: 729-72=6 bestforexrebatecompany7 Fifth trade: 657-65=592 After only 5 trades, As account has lost almost 40%! B is a relatively conservative trader, willing to take only 2% risk each time, lets look at his situation, Trade1:$1000–$20=$980Trade2:$980–$19=$961Trade3:$961–$19=$942Trade4: $942–$18=$924Trade5:$924–$18=$906First trade: $1000-20=980Second trade: $980-19=961Third trade: $961-19=942Fourth trade: $942-18=924Fifth trade: $924-18=906Even after experiencing The more you lose, the more you need to win to make your money back. For Trader A, the remaining $592 needs to make 68% to get back to $1000! If you ask me if thats hard, my answer is pretty hard! Trader Bs situation is more optimistic, after 5 losses there is still $906 left, only need to earn 10 profit, the account back to $1000 Some people may say, I will not have 5 consecutive losses here I still have to ask you, or you can ask yourself these questions: 1, you can really avoid 5 consecutive losses? 2, after 5 trades the account lost 40%, you really do not care? 3, are you confident that you can make 68% profit in just one transaction? If your answer is no, before trading you have to make sure you do the following things: 1, choose a controlled risk ratio, I recommend less than 5%; 2, according to the risk ratio to determine your position; 3, adhere to the trading plan, do not arbitrarily change the risk ratio forex trading can indeed create overnight riches, but you should not pursue overnight riches in the foreign exchange market forex trading success The key is to be able to survive in the long term, have the capital to survive and go to learn more foreign exchange learning - forex beginner basics, how to speculate in foreign exchange, please visit: forex basics learning section 
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