Money Management

Expect the Unexpected Using Well-Known Theory

Strict money management and risk control is essential to achieve long-term success in the forex market. The high level of leverage available to Forex traders makes it important to manage risk exposure and to avoid overleveraged positions. Successful forex money management aims foremost at the preservation of initial trading capital. Below you will find useful money management tips that will help you limit the losses of any single position and not be wiped out by a temporary losing streak.

  • Good Forex Trading Technique Involves Taking Losses

    Most seasoned forex traders will be more than happy to tell you about their big winning trades, but not so many will be forthcoming about their worst losing situations. Read More

  • Using the Z Score to Determine Trade Size and Boost Performance

    Suppose that we have a trading method which gives us great confidence, produces satisfactory results over a long time, and which refined through a long period of study and experimentation. Read More

  • Leverage and its Risks

    Leverage can be defined as the amount of a trading position you can control with a given amount of margin, i.e. money placed on deposit as collateral. Read More

  • Key Risk Management Principles for Forex Trading

    Many novice forex traders begin trading without a trading plan, and this is one of the primary reasons why the vast majority of new traders lose money. Read More

  • Managing Trading Risk With Stop Orders

    Just about any forex trader who wishes to avoid watching the forex market constantly when they have a position will want to consider leaving stop orders in the market to help them manage their risk. Read More

  • Use Caution With Managed Forex Accounts

    Legitimate managed forex trading accounts may not be the easiest investment vehicles to find in today's forex market. Many unfortunate people have found to their dismay that their forex managed account funds have been stolen by fraud perpetrators operating what... Read More

  • Forex Trading Versus Gambling

    Numerous attempts have been made to simplify trading in the forex market, and while a degree of success has been achieved in this area, trading forex is more than installing a trading platform, funding an account and clicking a buy... Read More

  • Five Top Money Management Tips

    Trading the forex market without safeguards can be like skydiving without a parachute. Anyone serious enough about trading would do well to incorporate money management techniques to their trading plan to protect their portfolio. Read More

  • Position Sizing Using the Risk Reward Ratio

    Position sizing involves making an objective decision about what positions to take when trading, and it makes up an important part of just about any sound money management strategy. Read More

  • Forex Position Sizing Strategies

    Selecting a suitable position sizing method can affect your success as a forex trader as much as choosing a direction to trade in the forex market. Read More

  • Gambler's Conceit

    Since trading forex involves taking risk, much like gambling, traders would do well to learn from some of the mathematical concepts that underlie the theory of gambling. Read More

  • Martingale Trade Sizing and the Gambler's Fallacy

    Over the years, forex has acquired such a bad reputation that there are books published sold with statements similar to the below: Read More