Forex Trading For Beginners - Money Management And Risk Management

http://mastertrader.online/tms_harmonics_ph/ Why money management is important in Forex trading? Because no matter how accurate our analysis is, and hoe experienced we are as Forex traders, we are still dealing with future event - market movement in the future - which no one can predicts with 100% accuracy. In other words, because nobody knows what the market is going to do in the future. When you are trading, you’re betting on a future event that may or may not happen as you predicted. Therefor you need a safety net, a plan to protect your invested money, so you wouldn’t lose it all from one losing trade, and be able to trade and make profit in the long run, even with losing trades. And that’s the real lesson that most beginners fail to understand. How to accept and deal with losses correctly. We need to understand that losing trades is part of the trading game. It doesn’t mean you’re not a good trader, it doesn’t mean your trading system or strategy doesn’t work..etc It only means that sometimes, you will eventually have losing trades. Money management allows traders to keep trading, and make profits long term - and short term as well - even when they experience those losing traders from time to time. Without money management, one losing trade could burn your whole trading account, and this could happen - in some cases - within few few minutes. It’s not enough to use a profitable trading system or high winning rate strategy. You also need effective and well planned money management strategy, to be able to make money from trading Forex market, or any financial market. http://mastertrader.online/tms_harmonics_ph/

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