In our previous article, we talked about one of the most
important aspects of trading in any market and especially Forex, which is Money
Management. Money Management in Forex can be defined as the way a trader
manages his equity, number and size of trades, open positions, stop loss limits
and take profit targets and optimizing its Risk/Reward ratio in order to yield
positive results in the long run.
To appreciate this, first you have to recognize that no one
can always get it right and we all get losing trades. This is a fact in a
trader’s life and the sooner a trader accepts this, the better his chances of
being profitable in the long run. We often hear traders speak as if they are
certain what the markets will do next. The best approach is to try to view the
markets in probabilities and always
have an analysis to support our opinion.
