Safe Trading Capital With Money Management
Trading has a very high risk, therefore many traders fail even mc (margin call) in trading. In order to avoid failure or margin calls in trading, traders must have good money management. Money management is one of the important factors in forex trading, where this will later be related to risk control. As traders know that trading is a business, and in business of course there are risks. No matter how large the trader's capital, of course, must be smart in doing business, therefore risk limitation is very necessary. Learning to control risk is one of the keys to success for traders to generate consistent profits in the long term.
Money management includes the number of lots in each trading position, what is the distance between the entry price (open position) and the stop loss (SL) and the profit target, as well as the maximum number of trading positions that traders will open at the same time. Forex as traders know can provide profits, but traders' positions do not always profit continuously. It could be that the trader will experience a loss once or twice before making a profit. It is also possible that traders will experience consecutive losses without knowing when they can profit again. In the end, the profits that traders had made for months finally evaporated overnight. This will also have an impact on trader psychology and trading quality. This is where the role of money management trading is needed. Therefore, traders can start looking for strategies to face the risk of loss by applying the right money management.
This is a short article from us, hopefully it will be useful for all traders. Watch the video below to get more detailed and complete information!
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