7.0 How to use 2% trading rule in money management

http://www.capexforextrading.com/money-management Sometimes making profit in the Forex market is relied on more heavily by money management than by picking the currency pair to trade. This is backed-up and supported by the 2% rule which is used widely across the globe. Whilst it may sound small, the 2% rule is there to protect your investment and ensure you make the optimum profit. The rule applies to the risk part of your trade i.e. the stop loss distance you are using. In general terms, no matter how perfect the market scenario is you must never risk more than 2% of your total investment in a day or a trade. By setting this limit you do not leave yourself open to more losses during that day and simply wait for more opportunities tomorrow. If you succeed then your 2% becomes a bigger chunk of risk so this style of money management is always accumulative to your trading performance.

Comments

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3. So 2% of 1000 is 50? LOL :D epic fail
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7. Great Info, but I can not figured it out yet is how to calculate accurately taking in consideration the leverage and the lots that you should trade at the same time, lets say i have 5000: 50 leverage I never known...and also the stop most of the time, and my short experience as a trader, is never 10 or 20 pips...Thank you for your great videos i came looking for info on the ADX indicator that I think is very helpful....I will like to know also witch ones you use on one time frame to keep it just right...Many Thanks!!! I think the explanation about the brokers was 1rst class...when I I open another account it will be trough out your page...
8. 2% of 1000 = $20!!!  ????