Poor Money Management.

Jeff Martinez

Recruit
Messages
100
Poor money management is one of the most exceedingly terrible record executioners for new traders. This backpedals to eagerness, since traders commonly overleverage while shooting for doubtful benefit targets. You ought to risk a little level of your record on each exchange, and you ought to risk a similar sum on each exchange. I prescribe failing to risk over 2% for every exchange. Numerous fruitful Forex traders risk 1% or less per exchange, and some exceptionally effective and experienced traders risk 3%.
 

FxMaster

Lt. Colonel
Messages
9,145
As per my experience, I can say that newbies are keen to double their money and easily trapped in by so-called manager`s double your profit scheme. They need to learn proper first before they jump in or cross verify the source they are going to invest. We all are newbies at some stage but I thank FPA that they give us very good platform to help them :)
 
Messages
72
That is true that new traders are aggressive for making their money quickly. As a result they got scammed. Also lack of knowledge is the main reason that they got scammed and lose their money. The solution is before dive deeper they need to learn the proper way of forex trading and also the basic knowledge which will be required while trading. They can also take help from FPA to find a good broker and can use the demo trading platform to increase their trading skills.
 

EURUSD

Sergeant Major
Messages
1,133
Its general as newbie that very excited after hear if on forex business they can making double money easily, I am ever hear experience newbie trader which they can making easy profit on first time trades, then being over confident and add new deposit with expectation will obtained higher profit, but what happen is he get margin call account because greedy.
 

iMusingKiMi

Sergeant
Messages
896
This is the most common question on debate. Someone will say you should have good strategy before money management. I believe the path to success are always a good money management come first.
 

Ken Smith

Private
Messages
104
Poor money management is one of the most exceedingly terrible record executioners for new traders. This backpedals to eagerness, since traders commonly overleverage while shooting for doubtful benefit targets. You ought to risk a little level of your record on each exchange, and you ought to risk a similar sum on each exchange. I prescribe failing to risk over 2% for every exchange. Numerous fruitful Forex traders risk 1% or less per exchange, and some exceptionally effective and experienced traders risk 3%.

Poor money management is one of the reasons of failure in forex. To be successful in forex you have to follow good money management rules. It has been said don't risk more than 2% of your money. It is better to customize your money management rules according to your trading personality.
 

nahiyar

Private, 1st Class
Messages
797
As trader is linked to trading day by day he learn different stages of management. Poor money management should be treated with practice. It will be dangerous if one is not aware of risk management techniques. He should plan trading not use much money in just one trade . First try to manage your small targets then you will be able to get big aims from trading.
 

Addam

Recruit
Messages
259
I agree that beginning traders don't manage their money well and don't always understand how it works. But afterall among experienced traders this can also happen very often.
 

Aubrey Aubrey

Recruit
Messages
85
Poor money management is not acceptable at all in forex business. Because forex is the most risky business though it has the huge opportunity of making unlimited profit. For this risky business trader also required the risk management process besides money management. I have seen many trader especially the newbies took the high volume leverage facility but do not maintain money management. As a matter of fact most of them lose their trade.
 

Addam

Recruit
Messages
259
Yes, if you trade your money badly, it may result in loosing all your funds and it will be hard to trade again. the more the losses, the more a person is afraid to trade.
 
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