Practical Formula for Money Management

yeah thanks for the input it was very helpful as i am a very beginner in the world of trading because management is very important to avoid the name MC, thank you so much i have to learn a lot to achieve success.

successful friend.

Risk management in the form of a good MM and the right RRR can indeed produce consistent profits, moreover coupled with a certain profitable strategy will be even more optimal in gaining profit.

Many professional traders only use the smallest lot even though he already has a profitable system and good psychology. We should imitate it for the sake of our account security and the consistency of the profits we get.

The most important thing in using safe management is that our trading account will be safe and most likely it will develop, because we can survive. If we use a big risk then it will be difficult to survive, especially if it can develop, the possibility will be very small

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each person must have a different view of money management but it is better to just follow what is suitable for our trading style.
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but I don't have the management that suits me bro, maybe you can give your experience here

Risk management if applied properly will maintain the security of our account, but also must be supported by the psychology that is too high because in applying risk management in a disciplined manner it depends on our psychology.

but I don't have the management that suits me bro, maybe you can give your experience here

yes, but now I'm still confused about my own commitment and how should I start ??
here I am still a beginner about forex but I want to learn a lot by seeing people who are successful in this field and make a real source of income.

You can learn from this forum regarding trading systems, money management, rule trading and plan trading. and you can learn it all and make it all in your own way, because the character of each trader is different, so you have to make your own that is right and suitable for you. because this thread discusses money management so I limit only discussing money management

Having so much importance on a Money Management in trading, I tried to share this formula a little, as a basic description.

This formula is to determine the LOT that will be used on MT4 brokers that use 5 digits.

Information :
BALANCE = Capital
RISK uses 1% (can use between 0.1% to 2%)
SL (Stop loss) can use 25-50 PIP (it's up to each trader)
OP is done = 4 times the OP with a ratio of 3 loss: 1 profit

FORMULARS are as follows:

Lot = ((Balance x Risk) / OP) / SL

For example $ 100 capital
The formula is:
Lot = (($ 100 x 1%) / 4) / 25
Lot = 0.01

It is better if the SL uses a distance of 25 pips, then the TP distance is 100 pips.
If 3 x OP loss with the amount of $ 0.75 and when you TP at OP 4 with a profit of $ 1, of course you still get a profit of $ 0.25.

It looks small, but with MM that is good and right, it is certain that the funds we run can be far from the large loses

this is an example of a Money Management Model

the solution for 10 $ can use a cent account, actually 1% risk is ideal, the problem is you want to increase it to 2% if it feels safe it really doesn't matter too. so the point is with 1% risk as much as possible we try to always be far from the MC, and still be able to take profits even if it is a small percentage