Wednesday, April 2, 2008

Forex money management

As I have said in previous articles, Forex is pretty much gambling. If you have no strategy, you can lose your money if you do so, you will have more than 50 of your account. How much money did you win for your losses? 50, because you have $ 5000 left in your account to achieve and 10000 US dollars to win, you have to find another $ 5000.
Ok, now we have an idea about how things are going. While Forex Trading, you must always remember the following basic principles:
1. No more than 1-2 from your account, how many steaks can you lose support? Let us look at the mathematics:
1 +2 +4 +8 +16 +32 = 64, which means that you can afford to lose, 6-times in a row, and double-click after each loss, but this is not always a good strategy, because it is very possible to lose, 7-8, and even 25 times in a row! Instead of double after each loss, you have to be patient and take your profits increase when all the indicators show the same thing.
2. Use the risk / reward ratio to computers appreciate your earnings or losses. Trade only when you have a high reward ratio
For more forex articles, tutorials, books, strategies, indicators, all for free, see http://www.fxpalace.com/ " > FxPalace dollie tamica



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