Money Management
Expect the Unexpected Using Well-Known TheoryStrict 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.
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Leverage and its Risks
April 17, 2013 at 5:08 AMLeverage 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
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Key Risk Management Principles for Forex Trading
April 05, 2013 at 3:37 PMMany 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
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Good Forex Trading Technique Involves Taking Losses
April 05, 2013 at 3:18 PMMost 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
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Managing Trading Risk With Stop Orders
April 05, 2013 at 3:12 PMJust 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
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Use Caution With Managed Forex Accounts
April 05, 2013 at 2:58 PMLegitimate 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
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Forex Trading Versus Gambling
April 05, 2013 at 2:50 PMNumerous 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
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Five Top Money Management Tips
April 05, 2013 at 2:15 PMTrading 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
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Position Sizing Using the Risk Reward Ratio
April 05, 2013 at 2:00 PMPosition 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
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Using the Z Score to Determine Trade Size and Boost Performance
April 05, 2013 at 1:58 PMSuppose 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
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Forex Position Sizing Strategies
April 05, 2013 at 1:45 PMSelecting 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
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Gambler's Conceit
April 05, 2013 at 1:06 PMSince 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
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Martingale Trade Sizing and the Gambler's Fallacy
April 05, 2013 at 12:51 PMOver the years, forex has acquired such a bad reputation that there are books published sold with statements similar to the below: Read More
