MoneyTec 2.0 - Online Forex Traders & Brokers Social Networking Community » Trading Talk » Money & Risk Management

[fxrealm]

The holy grail in forex is money management.New traders fool themselves they can get rich quick in forex. Proper money management separate successful traders from the 95% forex wannabes

[msforex84]

i totally agree with pinalli! Strategies are very important.

[georgeharrison]

Originally Posted by mrbrint

Yeah Id think it best to create my own system.

I agree, it is best to create your own.

[Trader Rich]

First of all, you need a set of high probability low risk forex strategies to help you remain structured for all kinds of market situation. Second of all, you need to have the discipline to follow through your strategies.

[ForexTrade09]

This is my first post on Money Tec. Nice to meet you all.

Since we're on the MM topic, I thought it would be important to address leverage specifically. Overleverage is a big mistake that new traders make. When you're brand new and just learning to trade, don't put on large positions, relative to the amount of capital you have.

For example, if you have $500 in your account, you probably don't want to put on more than 1 or maybe 2 micro lots ($1000 per micro lot) at a time. You're inviting distaster if you do this.

In this example, 1 micro lot would be 2:1 leverage and 2 micro lots would be 4:1 leverage. Just to be safe, keep the leverage low until you have a track record of profitable trading.

[ForexTrade09]

I'm interested to know if everyone has a set risk reward ratio and what it is?

I haven't formulated my strategy yet, but I'm thinking that a 1:3 risk reward ratio will be what I use.

[finvik]

we are humans and like all humans, we suffer from greed. Like all humans, in crucial moments (or market conditions) we lack confidence, we have fear of what might happen and most importantly, we are usually (90% of the time) - inconsistent.
Taking this into consideration, 90% of traders WILL LOSE MONEY IN FOREX. They will consistently give away their money to the other 10%.This, together with the illusion of becoming millionaires overnight trading some "guru's" trading system from an e book, is what keeps the Forex market a great business for Forex brokers and the so called guru's.
If you really understand this, then you can actually MAKE MONEY IN FOREX...How?
The easiest way to do it is using a profitable expert adviser.

[miskec]

Originally Posted by finvik

we are humans and like all humans, we suffer from greed. Like all humans, in crucial moments (or market conditions) we lack confidence, we have fear of what might happen and most importantly, we are usually (90% of the time) - inconsistent.
Taking this into consideration, 90% of traders WILL LOSE MONEY IN FOREX. They will consistently give away their money to the other 10%.This, together with the illusion of becoming millionaires overnight trading some "guru's" trading system from an e book, is what keeps the Forex market a great business for Forex brokers and the so called guru's.
If you really understand this, then you can actually MAKE MONEY IN FOREX...How?
The easiest way to do it is using a profitable expert adviser.

Expert advisors usually work for few weeks/months but then they need to be retweaked for the new market conditions. That can be a problem sometimes because it takes time and money to do so.

[forexmegadroid]

Money management is the most boring yet most important...

How ironical it is...

I am still finding ways to trade automatically using my own trading system so I can escape handling my own money..hahhaha... I tend to disobey my own money management rules

[finvik]

Originally Posted by miskec

Expert advisors usually work for few weeks/months but then they need to be retweaked for the new market conditions. That can be a problem sometimes because it takes time and money to do so.

Yeah i agree with you.

[oilbiz]

OK, this is going to alienate everybody, but I don't care!

Every post here is wrong.

The reason people fail at trading rarely has to do with techniques or money management. Isn't it obvious that it can't be the case since we are snowed under with systems and advice?

It's a ridiculous belief that you can take a 9 -5 worker with a slave mentality and think that trading will make them successful and financially independent. It's as stupid as taking a shop girl and making them Managing director of a big multinational.

The reason people lose at trading is because their subconscious mind doesn't believe they can be rich and successful. In the battle between the unconscious mind and the conscious mind, the former will ALWAYS win.

All this talk about 'it takes years to learn how to be a profitable trader' is just crap. The ones who become successful have, along the way, managed to reprogram their subconscious minds to believe they really can be financially independent. Since we can never know what is in our subconscious (otherwise it would not be SUB conscious) and they don't understand the concept, they explain it by saying they've learnt the 'techniques' properly at last.

Believe me, when I understood this and discovered how to reprogram my subconscious, my earnings went up literally tenfold overnight.

Try Googling 'Success For Traders' 4 a solution!

[finvik]

Originally Posted by oilbiz

Every post here is wrong.

Oh Yeah so what do you think that only you are right.

[pinalli]

Originally Posted by finvik

Oh Yeah so what do you think that only you are right.

lol... why to fight buddies... let come to the point and discuss the weakest points where people fail in forex trading.

I believe gread and over confidence is the biggest enemies and also lack of knowledge for newbies.

Regards

[finvik]

Yes you are right .

[pimaru]

It's a difficult part of trading, but it's very important