Forex Money Management

Forex money management rules

Now a lot of people use the currency exchange market
(FOReign Exchange, and is translated as "foreign exchange"). Often
I heard that people in this market are making great strides. Of course, not always
using the services of this man pursues market success and prosperity.
For that would break out at the top must not only engage in transactions
on the market, but also to observe certain rules its capital management.

Having mastered these rules you will be more likely to avoid
errors in transactions. Forex Money Management task is not easy and
It requires some effort, but, as we know, there are huge easily
account. All rules governing study such specialties as management. AT
this particular case, Mani management (management of the finance, money).

Money Management Basics

Can be represented by three laws:

1) The risk of the transactions in the Forex should be from 2
up to 5 percent;

2) Transactions on FX can conclude with the proviso that
the perceived risk of it will be less than the expected profit by 2-3 times, but
possible and more;

3) Do not open multiple transactions.

Consider these rules in more detail. To work on forex
you must have a certain contribution. So that's specified in the first rule
The percentages indicate what percentage of its capital stock exchange may be lost when
receiving stop-loss. It is very important to count the transaction.

In considering the second rule we can see that
rate needs to be done under the condition that it is necessary to exceed the stop-loss of about 3, and
better than 4 times. Many beginners admit such a mistake - put the amount much
more than the profit at the end of the transaction. Do not do that. Remember - this is
It is not beneficial and it is dangerous for the balance of the state.

Several transactions at the same time should not be open,
because it can "dispel" the attention and will be hard to keep track of all
trades and determine when it should be stop. However, at the conclusion of
long-term deals to sign short-term deals as possible. The main thing to keep up.

This basic money management, it is desirable that
Always observe. Compliance allows you to control your expenses, incomes
thus invariably grow. Most hardened residents of the financial markets
They say: "Directed losses on the vine and let profits grow." This is exactly what
show forex money management rules. Constantly need to their
loss control and reduce while increasing profits.

Just want to mention that when the loss-making in the early
transactions go into profitable and begin to make a profit, you must
rearrange stop-loss, the level of the opening price. Moreover, this level
It called level without loss.

Of course, the rules much more than shown here, but
without complying with these basic, beginner can not become a person who
each transaction is profitable and which are not profitable, just does not affect the
the state of his account.