Money Management Why Traders Fail in Market

Why Traders Fail in Market

The main reason of trader’s failure is that he or she has no appropriate knowledge of ‘Money Management’. The currency traders have had access to leverage (borrowed money). This availability of leverage tempts them to place trades larger than their accounts.

As a result, whenever losing trades happen, they lose 20%, 30%, or 50% and some time the whole trading account. On the other hand the traders who always follow the “rule of thumb” undoubtedly, elimination of loss is not possible but for them the quantity of loss must be small.

These losses can be avoided by following steps:

Calculate 5% Loss on Your Trade Account

This calculation is very easy. You just multiply your account balance by .05. Suppose you have $7500 account multiply it .05. This amount will be $375. Now you can see the benefit of following the 5% rule. Your maximum onetime loss will be only $375.

Try to Enter Higher Probability Trade
As trend traders you should always try to find strong’s trend currency pair. Then seek an opportunity for entering a trade in the trend’s direction.

Once you succeed to find the pair, then you find a time frame chart which provides you support and resistance’s fairly defined levels. By this way you determine your entry and stop placement levels with greater clarity.

For making it clear I take an example of hourly chart for the currency pair EURNZD. This currency pair is in the downturn so, price action is creating lower highs & lower lows, whereas Euro is weaker than NZD. At the base of one hour chart you can short this pair if its price is below 1.5842, the stop price is 1.5906 up the previous high. Then you subtract the entry price of your stop, you will have amount of risk on 64 pips.

Divide These 64 Pips/. 05

This division will give the size of your account which would be needed to put 10K trade on the currency pair according to the 5 percent rule. In such case your account size should not be less than $1280. In case your account size is < $1280, then look for another currency pair for trading which parameters match your account size.

You must have noticed that all process was done "Before" entering the trade. In case you are waiting unless "After" and you enter trades for making this determination, this is possible that you might be entering trade that stop placement would cause you to take on very much risk.

If you are tending to take the 20K positions on the same trade, then your account size should be $2560, because double risk amount is being taken.

Money Management protects your trading capital. Almost all traders lose trades. So, you should set your loss level at maximum 5%. If you enter trades at less than 5% risk, that would be better for you. The Risk-Reward is an important component of the Money Management that ensures that on your winning trades your gain must be more than you lose on your losing trades.

Risk-Reward Ratio Problem Resolver

Many new traders close winning trades very soon on a small profit, but they stay long in losing trades with the hope that losing trades would turn into winning trades soon. In a result, they gain little but lose much and in some cases wipe out their accounts.

So, if want to increase your ability to survive as well as to be successful in the market, then you should place higher probability trades no more than ‘Five Percent’ and Risk-Reward Ratio at 1:2 ratio. 1:2 RRR means you are only risking half of that you are anticipating to gain on every trade.
For example, if you have 50 pips stop on your trade the gain must be 100 pips. In this case you will be gaining twice as compare losing. This calls positive Risk-Reward Ratios.

The benefit of Risk Reward Ratios is that you may lose more trade than win but still remain profitable trader. How?

If you take 10 trades along with 50 pips stop on every trade and loses six of the trades, you lost total 300 pips, on remaining 4 winning trades you will gain 400 pips. The net gain of your 10 trades will be 100 pips positive, though you lost 60% trades but showed profit by the power of positive Risk-Reward Ratios.

Now you place a Risk-Reward Ratio in a currency pair NZDUSD that has been shown on the one hour chart. Since uptrend is being observed in this pair so, you will buy a higher probability entry. If this currency pair trades at .7991 above the previous high level, you should buy the pair. You would place your stop below. 7887.

If you place entry in .7991 and stops at. 7887, then, the distance between entry and stop is 104 pip. In case the trade doesn’t work out, you would be already aware that loss will be only 104 pips a trade. With 1:2 Risk Rewards Ration you are risking 104 pip, but you have a an opportunity for gaining 208 pips.

Now you use Daily Chart on the same NZDUSD pair and look if, there is any potential. In this chart if price trades above .7991 levels, it means, still have a ‘room to move’ upward to the next resistance level at .8236. This will be 245 pips gain. Since you were looking 208 pips from your 1:2 ratios, this will be more than your anticipation.

You should keep one thing in your mind, on the basis of; since currency pair has had ‘room to move’ it is not necessary that this pair would go that level. It is only trading edge not guarantee that the price must comply in this case.

Money Management in Forex Trading

Money Management in Forex – Money Management Is the Critical Part of Forex Trading
The money management in a Forex trading basically is the most vital problems of advanced and fresh forex traders. Mostly everyone can find the good trading method which can be gainful but something which causes the traders to lose as well as be unenthusiastic at end of month, is be short of the proper money management policy and discipline. Even though it’s very important as well as critical, it’s still so simple to follow.
The money management of forex have many different stages and aspects as well as must be begun from very initial levels of live trading with forex business that is creating your live account for trading. We’ve a very easy rule, which says that “Never risk over two percent of your capital.” Majority of the trader believes that such rule must just be used after having the live account for trading as well as whereas they trade, however this is false. Such rule must be believed even at what time you wish to create the live account. You’ve already demo and practiced trades sufficient as well as you realize enough confident to create live account. Let’s say that you’ve a 20,000US$ saving. So would you create a 20,000US$ live account? Fine, you may do like that but if you mislay such money for some reason? For instance, you brokers turn out to be bankrupt as well as end the firm and don’t give you capital back. Or else you get twenty lots place by mistake as well as you don’t remember to fix stop loss. And it moves against you intended for hundred pips as well annihilates your account. So you’ll not be capable to begin over, minimum for lasting time which you save few money. As well as such initial failure can have the huge impact at you as well you can’t believe about the forex trading any longer as well as you’ll lose the chance for the best.

If 20,000US$ is the money that you’ve, you must create a 400US$ account, particularly if this account would be your primary account. Or else a 1000US$ account maximum, and if you’re enough confident, which you’ve had sufficient practice as well as you understand the way of trade.
Therefore, the money management must be believed even prior to live trading as well as at what time you wish to create a live account.

Another stage is at what time you wish to select a leverage of account. In these days, you may even 1:500 leverage however such leverage is also big for the fresh traders as well as even the experienced traders seek to avoid this. A leverage 1:200 is satisfactory. I don’t wish to speak about the leverage in the article must be listening carefully on the money management however briefly, the leverage is a facility which you brokers provides you to allow you to run the sum of money by using the little sum of money. Such as, if the brokers provides you the leverage account of 1:1, after that at what time you wish to purchase 100,000 US$ against the Japanese Yen, and must have 100,000 US$ in the account. However if the broker gives a leverage 1:100, after that you just require to have 1,000US$ to purchase a 100,000US$ as well as therefore with the leverage1:500 you just require to have 200US$ to purchase 100,000US$.

Therefore, whey having the huge leverage as 1:500 is very dangerous? Since you may trade a big sum of money as well as if your deals moves against you, then you lose your all money so easily. At what time you’ve 400US$ account with the leverage of 1:500, if you purchase 100,000US$ against Japanese Yen as well as it moves against you on just 40 pips, you’ll lose you whole money as well as you may not trade further more. While if account leverage ratio was1:100, then you could purchase maximum 20,000US$. If you deal 20,000US$ with fourty pips of stop loss as well as your deal strikes stop loss, and you lose eighty however a fourty pips of stop loss by 100,000US$ position is equal to 400US$. To risk 400US$, you must have a 20,000US$ account, not 400US$ account since we’re supposed to the risk just two percent of our money whenever you like, not hundred percent of it.

The 3rd place which you must believe the money management, where you wish to get the position. Once more, we must not risk over two percent of our money. This rule must be used to positions that we take also. This is very vital level of money management that is so simple to use. You only need to believe it as well as not to disregard it. Now question is that how may trade as you’re not risking over two percent of money that you’ve in the account.
Before I reply to this question & before I educate you that how to evaluate your positions with the way which you do not risk over two percent with some trade, I wish to inform you something that which’s the most vital stop loss.

I tell you a little seriously and frankly that you do not set the right stop loss with your trades, and if you don’t love with setting stop loss as well as if you fix the stop loss however you move this at what time you look this is regarding to be activated, you’ll never turn out to be the forex trader since you lose your whole money you’ve as well as you’ll not be capable to trade to any further extent. Do yourself as well as a favor to your money. Excuse yourself from the forex marketplace as you do not wish to have a stop loss (SL) for your deals. I can’t highlight on the significance of a stop loss (SL) over this.

Setting the accurate stop loss (SL) for every trade is the different story. Few traders forever believe a steady amount of pips intended for stop loss (SL) positions however this isn’t right. The value of stop loss may be significant from time period to time period, the currency pair (CP) to present pair as well as the trade system to trade system. The stop loss which I select for the position that is taken rooted on the trade system on a daily graph, must be very bigger than stop loss (SL) I have, at what time I trade by using a fifteen minutes graph. So, stop loss which I have at what time I deal EUR-GBP is dissimilar than stop loss (SL) I fix for the GBP-JPY.
So, how to fix the accurate stop loss (S) is something which must be talked in various articles. I’ve already published the article regarding this title Where’s the good place for the stop loss as well as limit orders?

All right! Let us return to the discussion of money management. Therefore, the 3rd stage of the money management at what time you wish to get the position. The law says that never risk over two percent of your money in every trade. So it means that if you get the position as well as it moves against you & triggers the stop loss (SL), you may should just lose two percent of you balance account. For instance, if you’ve a 10,000US$ account, then you must only risk 200US$ in every trade. No issue that what place you get as well as how big is in your (SL) stop loss in various positions. You must select “position range” in a way which if stop loss turns out to be activated in some position, you miss two percent of account. For instance, if you find the trade system on the daily chart, which must have 150, pips of stop loss, which must have 150 pips of stop loss. So 150 pips must equal to the 200US$. Therefore, a twenty pips of stop loss (SL) on five minutes chart must as well equal to 200US$ which is two percent of the account. Simple to know so far, OK?
Before I tell you that how you may evaluate your size of position, I tell you the other factor. If the position moves against you as well as you realize stressed out as well as you less on your laps and begin praying & begging Almighty to come back to the marketplace as well you may dodge at the breakeven, means that you’ve traded with money which you can’t afford to miss it, you’ll be in trouble. In addition, you’ve taken high risk in the trade as well as you’ve not followed the money management regulations. Moreover, you’ve not fix the stop loss as well as your own account is very close to turn out to be margin called. And, if you deal like this, then you must understand that it’s not the trading. It’s something else. moreover, if by some opportunity, the marketplace comes back and you may dodge at the breakeven in single trade, you’ll be then trapped in the other trade as well as you’ll miss your entire money. nevertheless, if you pursue the money management regulations as well as you do not risk over two percent of money in every trade as well as you fix the accurate stop loss, at what time your (SL) stop loss turns out to be triggered you’ll say that, “Well, it’s the part of game also. Not whole my places are believed to strike the target.”
At the present, I tell you that how simple it’s to evaluate the size of your position. Let us say that you’ve a 10,000US$ account as well as you’ve found the trade system with EUR-USD that must have the hundred pips of stop loss (SL). This hundred pips of stop loss must equal to two percent of your money, rooted in the money management regulation, which says that you must not risk over two percent of your money in every trade.
2 percent of 10,000USD is 200US$:
$10,000 x 0.02 = $200
Now let me know that if hundred pips must equal to 200US$, what value of each pip must have? Correct. Each pip must equal to 2US$:
200US$ / 100 pips is equal to 2US$
Therefore, to risk just two percent of your capital in such trade, the size of your position must be selected in a way that every pip equals 2US$.
At present, a question is that how many EUR-USD you must trade in case you wish every pip is equal 2US$?
This question passes on to value of pip of every currency pair. Single batch is 100,000 parts of the currency in the forex globe. For instance, at what time you purchase single EUR-USD lot, it means that you’ve purchased 100,000 EUR against USD. But you purchase 0.1 EUR-USD lot, it means that you’ve purchased 10,000 EUR against USD and almost immediately…
Every currency pair (CP) has a various pip value. The pip value may be evaluated however you do not have to study that how do this because this is a bit complicated with few currency pair. In addition, you do not have to understand that accurate value of pip of every currency pair (CP) to evaluate you size of position. You just require to understand that single lot GBP-USD, USD-CHF, USD-JPY and EUR-USD has a 10US$ pip value (From time to time a bit higher as well as sometime a bit lower). The value of single lot EUR-JPY, USD-CAD and GBP-JPY is approximately 10US$ also. The EUR-GBP has highest value of pip amid currency pairs (CPs). It’s approximately twice value of pip of EUR-USD. In addition, the value of pip of a foreign like USD-SEK, USD-DKK is approximately 0.1 value of pip of every current pair, so change however, it does not change so much to power out position size. For example, the pip value. For example, the pip value. for instance, value of pip of single lot EUR0-USD from time to time is a bit higher as well as sometimes a smaller than 10US$.
Do not be anxious. You do not have to learn them. I’ll provide you the evaluator in the end of article, which can simply evaluates you size of position. I’ll also provide you the pip value evaluator. Nevertheless, prior to that, I only ensure that you know that how to evaluate your size manually. .
Now back to the question that how many EUR-USD you must trade that every pip equals 2US$:
It’s not so simple to reply. Every pip equals 10 US$ at what time you trade single lot EUR-USD. Therefore, you must trade with lot 0.2 if you wish every pip of your place to equals 2 percent and wish every pip of the places wished every pip as well as wish every pips of the position to equal 2US$. It may be evaluated via easy equation.

Now you may reply it immediately: two percent of the 100,000 US$ account is 2,000US$. When 200 pips of stop loss (SL) must equal 2000US$, every pip worth will be 10US$:
2000US$ / 200 equals 10US$
Therefore, the pip worth of your deal must be 10US$ as well as your position must be a single lot position.

Please tell me about your money management.

Binary Options Money management strategy

Binary alternatives money management is a vital factor that goes side in side towards identifying successful binary dealing alternatives plan. The Money management is very essential in the binary dealing alternatives, as it is for the day to day life. The Binary alternatives money management technique is one element that is often neglected. As in the forex trading, even the binary choice’s investors need to preset the trading techniques and discipline also. Binary dealing alternatives can be tricky, mostly because of growing results. Such a surrounding can easily lead to the individual’s emotions and inspite of keeping your deposits in smaller denominations, as comes to the matter of consolidation the problem shows a entirely different picture totally.
anyoption profit

The reasonable binary alternatives investor will need to follow the money management technique properly. There are certain periods when such investors come up well prepared with a good trading technique, and will not spend much time on the dangers involved if a appropriate money management technique is in order. There will not be anything like effective investors, let alone confirmed profit investments, if you don’t have way in to strong technique that allows you to supervise your financial selection.

Binary alternatives control is a preventive idea that recognizes you in to the succeeding trading day. Binary alternatives control demands whether an individual can manage to business extra opportunities keeping the risk factor in the mind. The golden rule of foreign exchange relates to the fact, which says that the investors should business if only they have extra cash that they can manage, even if they lose it.

Binary options control technique can be followed to a few precise features of dealing. Aspects like the, traders available capital to assign for a specified trade, the capital amount fo the binary trader is ready to sacrifice on a given trade, the volume of the business, a merchant can supply in are few of the things, that directly has an effect on the entire money management technique in binary dealing alternatives.

The aim of the investor let it be in foreign exchange of the binary trading options is mainly to get profit. No matter, if it is for a longer term period or for shorter period. However, binary alternatives investors have to come to holders with the truth that not every business carried out can be a profit earning one. Investment failures are part and parcel of the dealing experience and is predictable. Nevertheless, a good binary alternatives management technique can help people to decrease such failures and ensure that people make more successful investors as opposed to investments that are lost.

Make wild guesses

At times, you might feel that on entering with a particular asset may keep you in gaining profit. This is quiet natural as it is directly related to ones feelings. At all times, get back those gut feelings, by verifying the facts, no matter, into what trade you are. Investing in the binary options with careful approach is always much safe rather than to play with any gut feeling.

Don’t risk than 50 percent of initial capital

It is always better to invest only fifty percent of the available capital, when you trade-in. However, 25% is always preferable. Keep in mind, that other than the risk factor which is involved in this, the outcome is also not predictable. This means that, if you invest fifty percent of the capital, there is always a risk of investment loss as the same of the risk of getting profit in the trade. By following this method of fifty percent investment technique, you have the chances of not losing your total capital, even incase the trading goes against your side.

Diversify trade portfolio

This Trading of binary options, gives the investors a lot of options. An ideal binary choice money management technique comes with diversifications. In fact, the instability which along with trading the currency pairs is totally different from the trading with commodities ones or may be even the stocks. The payout obviously is different based on tool opted. As the saying goes, don’t keep all the eggs in same basket.

Watch the news

Now we have devoted a completed review on how the event based dealing can be beneficial in any dealing situation. Besides performing a research, people also have to see for any economic information that has the latent to effect your investments. Due attentiveness will pay off.

You can expect Loses also when you make trade

Losses in any business need to be approved on positive manner, please be aware. The effects when a business that does not favour you can impact the long run or immediately business judgements. Looking forward to loses while dealing, be it currency trading or binary alternatives can help people to recognize the aspects or factors that would have been neglected.

Start slowly and also scale up

It is a very vital part especially for the debutant investors. Never drop in to the emotional baggage and spend the total amounts immediately straight in to a single business. Trading in control forever, assists you to take regimented strategy. Most binary alternatives companies allow the very least amount of trading ranging from $10 -$ 30. Use this benefit and make ensure to business with patience.

What are the Most Common Mistakes that Forex Traders Make?

This is the list the Most Common Mistakes that Forex Traders Make :
1) Bad money management. very risky trades. When couple trades making loss – account balance goes to zero.
2) Bad profit / stop loss ratio. A lot of traders put stop loss to be 200 or 300 pips and make profit 20 pips.Afther 20 trades they will make profit, but in one moment afther few weeks or months – they will lose all money in account.
Profit/stop loss ration must be at least 1:1 or 2:1 or more.
3) Multiple loss positions : Trader has position in loss. He knows that market is overbought/oversold and he wait for breakout.(He doesn’t know that market can be in overbought or oversold condition few days or few weeks or few months before reverse). And thay make another trade in the same direction.They lose and wait for trend changes. And lose money more and more. Soultion : Use pivot points to enter, to make stops and limit. Don’t wait for trend changes. close lossing position on time.

Other mistakes :
I’ve by now made the similar mistake many times as well as I still make this if I get into the trade prior to correct prediction and enough analysis. This general mistake is vending mover the support row and purchasing under resistance rows. The support row is the row, which does not allow the cost moves lower. Therefore, if you vend temporary at what time the cost is rechecking the support. it’s greatly possible that a cost moves up. The resistance row is the row, which does not allow the cost move higher. Therefore, if you purchase, the cost can move down.

No one can say that when the resistance or resistance will be ruptured. From time to time they end for many years. You’ve to understand that the resistance or support, which has been capable to manage the cost for long time as well as have been rechecked by the cost of many times, nevertheless, couldn’t be ruptured, can end for longer time.

Why traders make such mistakes?
There’re two causes for that. (A). Few traders predict and think that the cost can rupture the resistance or support row this time, which the cost will recheck it. They can do such prediction via fundamentals or only by pursuing their feeling as well as imaginations. (B). Few dealers aren’t best enough in the technical analysis as well as finding the resistance or support rows.
Still if you’re the primary trader, you’ve to be conscious of the resistance or support rows. Vital news may break the resistance or support row but does not have some guarantee. For instance, it’s many year, which EUR-USD has moving up. Therefore, you may say that this can carry on moving up for many more years as well as so you purchase and maintain your position. It can carry on moving up but kindly not that some markets, has the limited as well as particular capacity. The capability of the market may be included but it requires some particular conditions.
Moving up for many years does not mean that this will move higher & visa versa. Therefore, the other things, which the trader must not perform is purchasing under the resistance as well as vending over the support row. You’ve await for the true getaway.

Please suggest more Forex Mistakes…

Risk Management is the most important forex trading calculation

More about Risk Management.

You can read about trading here because this is the most important section.
Why so important? Making money is business, for earning money we should know and learn to manage risk means potential losses.
Ironically it is the most overlooked areas of treading. Most of the traders are anxious in getting right trading total account size. To determine how can they lose stomach in single trade to hit “trade button”. Terms for this type investing which is called Gambling.
In management rules, if you are trading without money then you are in gambling. If You are not interested to earn for a long term of your investment. You are looking just to make jackpot.
Money management makes you more profitable in long term trade and protect too. If you won’t believe us then you may think gambling is the only way to become rich, which consider an example.
The time for gamble they hopes of winning by a big jackpot, in fact, many of them do win.
So the world casinos still money making how if many individual are winning jackpots?
Even people win in jackpots, in long term, still in profit because they make more money from people that can’t win. That’s why term “house always wins” which comes from.
Truth is casinos just rich statistician. Knowing they that long terms will work to make money instead of gambling.
Joe Schmoe wins $100,000 a jackpot in slot machine casinos know that other hundred of gamblers won’t win jackpot and money is right back to their pockets.
It is an example that how statisticians makes money over gamblers. In this case both statistician and casino lose money and also know how to control of losses. This is the way money management will works, if learn how to maintain your loss then you have a chance to gain.
At end forex trading numbers game mean you must have to tilt in every factor which your favor much you can. The house edge sometimes 5% above player. But 5% difference between loser and winner being in casinos.
Developing Your Own Trading Plan
Want to be a rich statistician not a gambler, in long term you always want to be a winner. How do you want to become a rich instead of loser in statistician?

How to calculate Amount for Risking on each Trade – Forex Money Management Skills

The first skill required for managing your Forex money is perseverance. It is perseverance that successful traders should have when they start trading. It is a fact that one cannot succeed easily on the way of forex trading because this is not a smooth path.

Almost everyone is seeking a dependable system and it is recommended to follow the trend for trading and utilize forex breakout strategy as the major trading system. It is the convenience of finding and execution for which this strategy is recommended.

When you are beginning trader, your main challenge would be to point out a trade and breakout trade is ideal for this very reason. It is crucial that you remain patient, while trading with the forex breakout strategy. Ensure that you move as per the plan and trade only when there is a break out of price and the best strategy would be to trade only when the price returns to test the breakout movement line.

When it comes to managing money, it is highly crucial to remain realistic. There are traders who fund $500 into their account and expect to earn $200 from each trade. This is something that is simply irrational. When trading, it is highly important to fix beforehand the loss amount for each trade that you want to enter into. It is reasonable to take around 3% risk on your trading account for each trade.

When the risk has been predetermined, it is important to choose the number of lots for each trade, and it is calculated with the following formula:

Amount for Risking on each Trade / Stop Loss

This calculation will ensure that your loss doesn’t go beyond 3% of the amount in your trading account.

When you have calculated your risk per trade, it is important to enter into trades that have high ratio risk rewards. For example, if your risk is 3% of the trading account for each trade, then you should search for trades that help you get a minimum of 5-6% profit because this would return you high risk reward ratio.

The risk reward ratio is the main key for success for most of the traders. When there is a high risk reward ration, you would find it easy to compensate for the losing percentage in your strategy.

For example if your trading account is of size $12,000, your risk per trade amount would be = 3% of $12,000 = $360

When you enter a trade keeping a 20-pip stop loss = $200 with 1 pip of value $10 in a standard account, the number of lots will be equal to = 360/200 = 1.8

Take for example that your strategy has a 70% success rate and you make 10 trades every month.

You would face 7 wins and 3 losses

When your trading is ever with a 1:2 risk reward ratio, you would get the following each month:

Win = 7x $720 = $5,040
Loss = 3x$360 = $1,080
Total Profit = $3,960

This example shows that in fact there are some factors that will help in improving your income every month.

1) The Account Balance – The larger it is, the more you earn.

2) Risk Management – The more is your earning when your RR ratio is high.

When you want to make good amount of regular income from trading, you need to focus on these two areas. It is required to invest time in growing your trading account so that you can enhance your earning.

What is Money Management for Starters ?

The levels of Fx trading exceed four trillion dollars per day. The Forex brokers may assist to invest in the FEM almost everyone have intension to gain benefits hot-blooded and hot-eyed starters often precipitate into the trading in a keen for desirable cake piece. The reason is quite comprehensible, however difficult to attain if you’re unaware of fundamental rules. These rules are concerned to the skill of currency management.

You’ll increase your opportunities for winning trading by via well-observed trading algorithms, scheming possible outcomes & trying not just augment but as well as keep your money save. For couple of loss-creating trades can withdraw you of all deposit, a volume of losses is frequently more significant than of incomes. Starting traders often look their normal incomes turning to considerable losses. If they employ the margin, they even face worse tragedy. Self-confidence & market’s support are doubtful training controls. It is good to aspire at tiny but stable incomes and movements a policy and pursue it.
You’ll absolutely require elaborating a policy sometime. Who says it’d be a simple score? Begin with demo Start with demo also then attempt the cent account. After that, go to the standard live account. I wouldn’t advice you to start with the margin of some bad luck can withdraw you of all deposit.

The trading with set volume is very easy method to handle you money. Place a set limit (for example 1 or 0.5 lot) also trade in it. Don’t open the numerous positions in one time. Still if this policy would not provide you n extra income, you would maximally save your money and have a foot in door to solid income. Forever analyze outcomes: monitor charts, make few calculations, and learn the market. One more way for management of money is to select a section of deposit you’re ready to hazard. Such as, 5% for the trade. The benefit of this method is as; you’ll have the similar hazard portion for whole trades. With increasing the deposit, you’ll be capable to increase the levels of trades as well as reinvest your money including income.