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.
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?