Forex Money Management: When and how to use hedging
Hedging is a trading tool (or a strategy) widely used by large corporations, funds, but also by retail traders like yourself. How to use forex hedging in the form of…
Money Management
If you want to earn money by trading binary options or Forex, you must first take care of your money. You can’t control financial markets, however you can control your reactions to them.
Money management is a very useful tool. If you understand how to correctly and sensibly manage your capital, you will take a leap to become a successful trader.
No matter how experienced you are or how much money you have in your account, you can never avoid loss-making trades. Loss is not an obstacle as long as it’s expected. It is not an obstacle unless it drives you mad and plays with your emotions.
However, if you put most of your money at stake or start panicking after a failure keep opening new trades trying to make up for the past losses, you will go astray.
Money management rules for binary options and CDF trading differ. No matter what type of trading you like, I advise you to read all the articles in this category.
Articles about Money Management
Forex Money Management: Embracing losses leads to success
What is your idea of a successful trader? Is it the one whose number of profits is bigger than the number of losses? Most people believe that to be seen…
Forex Money Management: Trading and psychology
At the beginning, all newly coming traders tend to be cautious. After raking first profits their confidence naturally grows. One, two or three months are enough for many traders to…
Forex Money Management: Martingale – An opportunity or a threat
Martingale is a popular strategy for gambling with the likelihood of success of 1 to1 (such as red vs. black on a roulette wheel). After losing a round, you should…
Forex Money Management: What is RRR and how to set a stop loss
Many traders wait for an ideal moment to open a trade, which is no doubt an important factor. To manage the actual position and to recognize an ideal moment to…
Part 5: Money Management – Trade Splitting
Everyone has probably come across a money management tactics Martingale in any of its form. Whether for increasing trades, multiplyng sums at a roulette or blackjack or any other way….
Part 4: Money Management – Simple tips for beginners
Yes, it is true that all traders are adults and should be able to manage their finances themselves. But not everyone can do it and sometimes your emotions won’t hold…
Part 3: Money Management – Martingale (Yes/No)
There is already one article on our web site about martingale. You can look at it here: Martingale strategy. In this article, we will take a better and more professional…
Part 2: Money Management – Different Approaches
As experienced trader Larry Williams comments and explains in his book (which I highly recommend to get and read): Unless you start to work with money management, you’ll only be…
Part 1: Money Management – Hedging
One of many interesting money management strategies, used by many, if not most successful traders, is called Hedging. As the glossary tells us, it is a reinsurance / insurance trade, used to either…