Basic rule about Money Management when we trade Forex
Money Management – MM is undoubtedly one of the most important areas of successful trading. Given that it is not in our power to always predict future price movements in the market for 100%, we must learn to deal with the trades that are not always profitable for us as a merchant. Despite the fact that we are in the forex market to make money, we simply will not avoid loss-making deals. In order to eliminate these businesses and control them, we use Money Management.
So what is it like?
Money Management is a set of guidelines and guidelines that help us with proper risk management in a business account. Its main objective is to ensure the investor’s survival in the market and, in the case of a series of loss-making transactions, to protect its capital as much as possible. It is statistically proven that if we trade without MM, we are hunting with our money.