How to Profit Consistent With Money Management
Money management is one of the important factors in successful trading. With good money management, a trader will have a greater opportunity to earn consistently. Traders may apply technical analysis and its indicators, may use and apply the news and fundamentals that have been collected, but if traders forget money management, they must prepare for the worst possibility, namely bankruptcy.
Many traders think that the loss is due to a lack of quality strategy or analysis used so it doesn't help much. Even though the cause of the loss could be from poor money management or money management. Money management is a trader's strategy in managing capital in both buying and selling positions when trading pairs.
One of the concepts of money management is don't put all eggs in one basket because you will not know when the market is volatile and down. Even though it has been properly analyzed, no one can predict when the price will go up or down according to the pattern. Given the high risk that traders will face in the market, it is important for traders to have a proper fund management strategy. Implementing money management is actually not a difficult thing to do. Money management is an important factor in forex trading related to risk control. There are many ways that traders can do in managing money, but the key remains risk limitation.
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