What is money management?
Even if you think managing the assets of the title is very clear and easy to deploy and manage your money and invest it wisely,-have more points. These investments in conservation, education, income and budget. It can also be divided to monitor operations on the use of the funds.
Practices to handle all cash any way every day in life, either personally or with other management, trade and investment. Forex and CFD trading success requires discipline. If you are planning for a long time in the field have the knowledge base is very important.
Foreign currency trader and the main reasons for losing money trading can be lack of experience. Ignored the principles of your debtor account management increases the risk and reduce the rewards. Currency is unstable, the best of your situation, Risk Management functionality inherent, essential money type correctly in these markets.
Risk management
Currency or CFD entry identifier, you must, some understanding, are entered so dangerous and accept this provision as a means of pressure. There are many risks in business, but there are a few ways to reduce these risks.
Despite the risk, usually yields a set of principles is:
Position sizing practice
Know the risks
Analysis and risk assessment
Develop solutions to mitigate these risks
Implementation and ongoing management of the solution
Position size approaches various aspects, so simple and so complex is available in the best selected, suitable for your platform. In this way, you can easily manage the winners and losers. Follow the three modes.
1. Batch of fixed size
Beginners start your business cars, a good way. This means that the trader with the negotiating positions of the same size and can be very low. Section, where you can change the account transactions, increase or decrease the time when formatting. The account size is important when you start very small and works with 2-1, in this way, you can profit growth can continuously over time.
2. Capital%
The capital, behind the idea, based on the value network based on percentage change in size of the site. You should determine the percentage of capital-to detect in each position and to allow the size of the equity position in growth. You can always increase the share of individual transactions, but no more advantages, more high risk received.
% To figure out what is fair trade?
It is generally recommended to trade and unfair, 1% or 2% is the equivalent of 50:1 Commerce, but you can choose remain in your position, the percentage of a long period of time. Simply put, to keep the size proportional to the share capital of the company is if you lose, it is in a location that stores the size of ozone with a lot of speed for a zero net can be reduced. In addition to reducing the volume of the measures before, is to minimize a losing streak for damages to the fair.
Don't forget that point balances needed more time after the loss of the same amount to be forfeited.
% of the shares at the top.
Behind this technique approach each work on the set until the part of the funding for this account, usually between 2% and 10% to limit. This method differs in the negotiations of the fixed interest rate and limited in time and descriptions, the derivatives market to protect the gains used show the increase.
