Money Management

This section is one of the most important sections you will read if you are serious about trading in Forex.
Why? because we are in the business of making money, and in order to make money we need to learn how to manage it. If you don´t manage your money you are just GAMBLING!

Don´t Lose your Shirt

If you really control your money you will see a BIG difference, here is an example:

Risking 2%
Trade Total Account 2% risk on each trade
1 $20,000.00 $400.00
2 $19,600.00 $392.00
3 $19,208.00 $384.00

Risking 10%
Trade Total Account 10% risk on each trade
1 $20,000.00 $2,000.00
2 $18,000.00 $1,800.00
3 $16,200.00 $1,620.00

Now have you seen the diference in risking 2% and 10%. The reason why you need to control your risk and manage your money is that when you are in a loosing period you will not loose all the capital. Trust me you don´t want to be in that position. The more money you loose the harder is to getting it back, so be careful.

To lose money in Forex is something that will happen at some point. The less you risk in a trade, the less you will loose your capital. 3% of lower is a great percentage to risk in your Forex account.

Remember if you want to gain money you should risk when you have all the information you need, that´s when having a Forex signal is a great deal, fo if you need FREE forex signals, go to http://www.fx-megaforex.com.