Money Management: The Key To Success In Trading
If you want to be a serious trader you will have a money management plan and set up risk parameters. When you have a reasonable risk plan, you increase your chances of making money as a trader. Also consider if you can afford to trade what you want and if you can handle a losing streak. You will need to determine what you are willing to lose before you start to trade and find out what the risks are.
There is one good way to enable you to be around for another day of trading and that is to only trade one half or your trading capital and save the rest in reserve. You should also figure out that you will not trade any more than say 2-5% on any one trade. You will also want to figure out which currency pairs you are going to trade and take into account the spread and how much the currency moves in any given day.
Two More Trading Examples
This video shows two more trades I made. The first was made on the GBP/USD, and the second was on the EUR/USD. Both were based on the Jump Start strategy.
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