One of the cardinal rules of Forex Trading is to keep your losses short. With the loss of small Forex trading, you can end up markets that run against you, and when it stays the trend, it might be better than that.
Before opening the Forex Trading position, the proven way to keep your losses low is to set your maximum loss before you.
The maximum loss is that the biggest capitalistic capital that you are missing in any trade.
A small part of your Forex Trading Float has been fixed with your maximum loss, you will be harmed by trading.
Contrary to 95% of the Forex traders, the money they earn there, because they did not apply good money management rules in their Forex trading system, you will have a great deal of success with the principle of this money management. Set maximum loss
Come on an example. If I had a Forex Trading Flot of $ 1000, and I would start doing business with $ 100, it would be appropriate to have three damages in the row. This will reduce my Forex trading capital to $ 700. What do you think 95% of these traders call this time?
Because of them, “Well, I had already damaged three rows. That’s why I really would win.” They will decide that they will make $ 300 betments in the next business because they think they are more likely to win
If the trader had betrayed $ 300 in the next trade, he thought he was going to win, his investment could be reduced to $ 400. These chances of making money are very thin. They will also need to make 150 percent in their next business. If they set their maximum loss, and if they were caught on this decision, they would not remain in that position.Here’s a great example because most people earn money in the Forex Trading Market. Start with over $ 1,000 float, and start with our Forex Trading $ 250.
After only three losses in the row, we have damaged more than $ 750, and our investment has been reduced to $ 250.
Effective, we need 300% return in the next trade and it will allow us to break.
In both of these cases, due to failure, the trader was very much threatened, nor good money managed.
Remember, our goal is to keep our losses as small as possible, and make sure we open a large position to invest on profits. With your money management rules in your Forex Trading system, you’ll always be able to do it.