Hello friends! Once again I want to write and put everything on the shelves, will not be superfluous, given that money management is a stumbling block for most beginners. Yes, if you lose, it is likely due to lack of money management, even if sin "bad strategy", bad luck or an international plot to drain your deposit!
More recently interviewed Vitali Shlykova trader, he began to trade on the stock exchange, where the maximum leverage is much below the shoulders forex, if at all present. According to him, this circumstance was very helpful at the initial stage, he managed to keep your first deposit, which is not often.
I was lucky to start with MICEX. There borrowings (shoulders) are hardly used. And the money to this account gave me parents who strongly believed in me and I could not afford to gamble grab me.
Today, many are beginning to Forex or Forts, there losing money much easier. I had a strategy and I knew that my risk per trade is 2000 rubles. Money management allowed me to trade and save money as I gained experience.
Thus, on the MICEX losing money is more complicated than in the forex. All this is due to the different leverage and risks accordingly. So why not take a chance on forex as in the stock exchange? Why not control the risk in each transaction at an acceptable level? Pay attention to your trading, especially if something goes wrong, as planned, possibly, in the case of excessive risks.
Money Management. Personal experience.
In early 2008, I was the kosyachny trader! Frankly, probably I made all the mistakes that could commit. About Money Management learned much later that I started trading so few fusion deposits imprinted in my history ...
Money Management in Forex
I was lucky to start with MICEX. There borrowings (shoulders) are hardly used. And the money to this account gave me parents who strongly believed in me and I could not afford to gamble grab me.
Today, many are beginning to Forex or Forts, there losing money much easier. I had a strategy and I knew that my risk per trade is 2000 rubles. Money management allowed me to trade and save money as I gained experience.
Thus, on the MICEX losing money is more complicated than in the forex. All this is due to the different leverage and risks accordingly. So why not take a chance on forex as in the stock exchange? Why not control the risk in each transaction at an acceptable level? Pay attention to your trading, especially if something goes wrong, as planned, possibly, in the case of excessive risks.
Money Management. Personal experience.
In early 2008, I was the kosyachny trader! Frankly, probably I made all the mistakes that could commit. About Money Management learned much later that I started trading so few fusion deposits imprinted in my history ...
Money Management in Forex
The risk is that you lose, not the volume, not the number of lots, namely the amount of money (or% of the depot), you will lose in the case of loss-making transactions. I do not just say that the level of stop loss you need to know to open a position, due to this risk, you will be able to know in advance.
When I lost my first deposit of the written above, not even thought about it. I lost it in 3 transactions, if I am not mistaken. Thus, the risk was more than 30% of the depot. I believe that my predictions are correct, even if you make a mistake, I can return everything to the next trade. But it so happens that one losing trade followed by another 3 losing trades in a row it's flowers can be 10, or maybe 20 or 30. This does not happen often, you can earn over the years, but if you calculate the bad money management, overstate the risks, you know, when something happens, such a series of misfortunes that run out of money! I am not kidding.
After losing the first deposit, I intuitively began to risk less, about 10% of the depot. This, as you already know, my deposit is also not saved. I lost it for several months. Restoring a deposit of subsidence is difficult, and the more this drawdown, the harder it is to recover! If you risk a certain percentage of your station, you can restore from a drawdown requires more transactions than to get into it. Count yourself!
In general, I had a bitter experience that taught serious about money management. I advise you to learn from my mistakes than to make the same! Excessive risks do not allow to make even a profitable strategy.
On the relationship between money management and psychology.
Psychology in trading is important as the fins of the fish. Many successful traders argue that psychology - a 80% success rate!
When I lost my first deposit of the written above, not even thought about it. I lost it in 3 transactions, if I am not mistaken. Thus, the risk was more than 30% of the depot. I believe that my predictions are correct, even if you make a mistake, I can return everything to the next trade. But it so happens that one losing trade followed by another 3 losing trades in a row it's flowers can be 10, or maybe 20 or 30. This does not happen often, you can earn over the years, but if you calculate the bad money management, overstate the risks, you know, when something happens, such a series of misfortunes that run out of money! I am not kidding.
After losing the first deposit, I intuitively began to risk less, about 10% of the depot. This, as you already know, my deposit is also not saved. I lost it for several months. Restoring a deposit of subsidence is difficult, and the more this drawdown, the harder it is to recover! If you risk a certain percentage of your station, you can restore from a drawdown requires more transactions than to get into it. Count yourself!
In general, I had a bitter experience that taught serious about money management. I advise you to learn from my mistakes than to make the same! Excessive risks do not allow to make even a profitable strategy.
On the relationship between money management and psychology.
Psychology in trading is important as the fins of the fish. Many successful traders argue that psychology - a 80% success rate!
Lack of money management has a significant impact on the peace of mind of the trader. There is a big difference, if you lose 1% of the depot (for example, 1000 by 100 thousand) or 30% (ie 30 000 of 100 000). In the first case, it is unlikely that you will get out of yourself, you want to fight back, and at the same time to throw up all the hair from his head. In the second case, the nerves can not stand when a single transaction transpired 30,000 of your money ...
Moreover, it is important to pay attention to the psychology and after profitable trades! Suppose you were able to carry out a successful transaction and earn 60,000 from your 100 000. As you will behave? Someone Inspired by the success, the risks increase even more in the hope of a quick profit. Someone will cease to trade on the contrary, will depart from the strategy, once received such profits. All this is due to lack of money management and uncontrolled emotions. For example, if you risk 1% of the depot, to lose 1 000, and make each successful transaction 2000, nothing extraordinary will happen, will not be hitting through the experience, etc. Territory Under this option will not work for a deal to double the deposit, but this way will lead to long-term success. Where big wins and losses are great, and where systematic and well thought-out trade - a positive result.
Short conclusion: the importance of money management for successful trade can not be overstated. Pay attention to my personal experience and the experience of other traders make the right conclusions. Believe me, it will keep your deposit! Little risk in each transaction will not bring instant fabulous profits, but will help to avoid huge losses, and is the key to long term success! Especially critical for the forex market, as with a lot of leverage you need to be doubly careful!
That's all for today, success in trade! See you!
Moreover, it is important to pay attention to the psychology and after profitable trades! Suppose you were able to carry out a successful transaction and earn 60,000 from your 100 000. As you will behave? Someone Inspired by the success, the risks increase even more in the hope of a quick profit. Someone will cease to trade on the contrary, will depart from the strategy, once received such profits. All this is due to lack of money management and uncontrolled emotions. For example, if you risk 1% of the depot, to lose 1 000, and make each successful transaction 2000, nothing extraordinary will happen, will not be hitting through the experience, etc. Territory Under this option will not work for a deal to double the deposit, but this way will lead to long-term success. Where big wins and losses are great, and where systematic and well thought-out trade - a positive result.
Short conclusion: the importance of money management for successful trade can not be overstated. Pay attention to my personal experience and the experience of other traders make the right conclusions. Believe me, it will keep your deposit! Little risk in each transaction will not bring instant fabulous profits, but will help to avoid huge losses, and is the key to long term success! Especially critical for the forex market, as with a lot of leverage you need to be doubly careful!
That's all for today, success in trade! See you!
