Money Management Techniques That Are Very Powerful & Profitable But Many Take It Easy

In every business, HOLDING POWER is very important. One way to survive in business is MONEY MANAGEMENT.

In managing forex trading capital, there is no marketing cost of renting employee liability stores and transactions with suppliers, where we only need to manage trading accounts well.

"Failing to plan is planning to fail."

Ok, next we have money management suggestions for newbies or those who are old in the field of forex. No matter what technique we use, the technique from the sky, or the underground, we are still trapped in the "rules" of money management.

Usually 2% risk for the low-risk beginner or for those who want to last longer. We only risk 2% of our capital in one day or one setup. This way, we have about 50 times Stop Loss (SL) for Margin Call (MC).

In addition, Risk Reward Ratio R: R 1: 2 which is Stoploss 2% Take-profit 4% also needs to be emphasized. For example, take setup and stop loss is only 2% of the capital, let's say we have USD 1000 risk or stop lost we only have USD 20 and take profit is USD 40.


Or risk rewarD 1: 3 where we risk USD20 out of USD1000 capital. TP will be USD60. If you lose 6 times in 10 trades and win 4 times, you still win USD120.

4 Winning Trade of 10 Position.
Win - 4 X USD 60 = USD240
Loss - 6 X USD 20 = USD120

USD240 - USD120 = USD 120

If we risk our account up to 10%, it only takes 10 times to hit Stoploss for a margin call. Ask yourself can we risk 10%?

If you want to last a long time, please use a reasonable percentage of risk or SL and TP. The most important thing is to follow the rules.