Money Management

Right money management on Forex trading - is a key for your success! Information in this section will help you to save and increase your funds. Positive trading results which you can observe in the monthly reports, can be achieved only in case of strict compliance of authorized advice on money management.

Does it make sense to put stop loss when trading in Forex?
CategoryMoney Management

 “Observing that he had not put in a stop-loss order I spoke to him about it and he told me that the break hadn't fairly begun and he wasn't going to be shaken out by any one-point reaction. This was in August. Before the middle of September he borrowed ten dollars from me for a baby carriage -- his fourth.”

Edwin LefevreReminiscences of a Stock Operator

Thank you for taking your time to read my post. Today, let’s consider an important and practical issue on stop orders. What is a stop order? What is special about them? Why do traders need stop orders?  

Stop Loss is an order placed by a trader on a trading platform to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor’s loss on a position in a security. It is also known as a “stop order” or “stop-market order.” 

Is breakeven a treatment from losing?
CategoryMoney Management

Hello dear friends.

I think that each of you has placed a position in the breakeven zone at least once in the life. However, may be not all of you know this method of capital management. Let’s start from the definition.

Breakeven is a level at which you place stop loss so that in case of its execution a position will be closed with zero profit and loss.

You can often hear the following expression: “to place a position in the breakeven zone +1 pip”. It means that when the stop loss order is executed, a particular position will be closed with the profit of 1 pip.

Money Management. Risk per order.
CategoryMoney Management

 

 

When I ran away from Singapore, they started to understand that something was wrong. The main reason for the bank collapse was its poor money management system.

Nick Leeson. 10.11.2007, Moscow.

Dear friends, last time we discussed the necessity to put stop orders, one of the main tools for limiting losses. Today, I would like to touch the issue of money management and look at it in detail. Besides, we should decide whether the system is useful for forex trading. Let’s start from the definition.