Forex Zone - Forex Forum

like how to calculate money management

Discussion started on General Forex Discussion

  • Sr. Member
  • Posts: 378
  • Points: 13171
  • Likes Received: 13
  • Reputation: +0/-0
calculating money management is done on the basis of strategies and transactions as well as the capital we have so that we can determine the number of lots and margins that we will trade as well as the stop loss.
#16 - December 10, 2020, 06:07:14 AM

  • Sr. Member
  • Posts: 436
  • Points: 19608
  • Likes Received: 5
  • Reputation: +1/-0
calculating and implementing money management can be done by comparing the capital and lots that we will use, besides that we must also be able to determine the biggest risk that we will give up.
#17 - December 10, 2020, 01:09:30 PM

  • Sr. Member
  • Posts: 296
  • Points: 0
  • Likes Received: 37
  • Reputation: +1/-0
Implementing and calculating money management (MM) is indeed sometimes difficult to do, because traders are often motivated to get profit in a short time, using unreasonable leverage and lots. Calculation MM should be adjusted based on the capital owned.
#18 - December 14, 2020, 12:04:09 AM

  • Full Member
  • Posts: 211
  • Points: 0
  • Likes Received: 21
  • Reputation: +0/-0
Good money management is relatively difficult, due to various factors. 
Myself started trying to use a 1: 2 risk reward ratio to calculate MM so that it is balanced and not too risky.
#19 - December 14, 2020, 12:58:14 AM

  • Sr. Member
  • Posts: 266
  • Points: 0
  • Likes Received: 19
  • Reputation: +1/-0
Observe and adjust the capital that is most important before calculating good money management calculations.
The problem that often arises in traders is that they do not adjust their capital and trade beyond the ability of margin resistance.
#20 - December 14, 2020, 07:27:48 AM

  • Hero Member
  • Posts: 524
  • Points: 0
  • Likes Received: 65
  • Reputation: +2/-0
Money management is one of the most important things in forex trading, making calculations according to our capital conditions will help with better results, therefore MM calculations need to be reviewed and used as best as possible.
#21 - December 15, 2020, 06:30:14 AM

  • Hero Member
  • Posts: 549
  • Points: 212
  • Likes Received: 10
  • Reputation: +7/-4
Money management is indeed a fairly important factor in trading, without good money management, it is impossible for trading to produce the desired profit, without money management, our losses will become uncontrollable and may even end in big losses. therefore don't forget about money management in our trading
#22 - December 23, 2020, 12:06:07 AM

  • Hero Member
  • Posts: 701
  • Points: 5910
  • Likes Received: 39
  • Reputation: +1/-1
calculating money management must be based on what we have, do not force a calculation so that it can be applied in a trading strategy that can last a long time.
#23 - December 24, 2020, 07:04:23 AM

  • Sr. Member
  • Posts: 434
  • Points: 0
  • Likes Received: 17
  • Reputation: +1/-0
Money management is very complex because in addition to taking into account risk management such as stop loss, the amount of margin or lots, the number of transactions and so on, it also gives us other strategies.
#24 - December 24, 2020, 08:55:43 AM

  • Sr. Member
  • Posts: 444
  • Points: 0
  • Likes Received: 31
  • Reputation: +2/-0
It's simple to use money management, just set the stop loss and take profit.

but specifically there is still a lot that money management can do, such as trailing stops, cut losses, etc.
#25 - February 08, 2021, 07:15:05 PM
« Last Edit: February 08, 2021, 07:35:29 PM by Mochira »

  • Hero Member
  • Posts: 2224
  • Points: 7991
  • Likes Received: 140
  • Reputation: +6/-1
There are so many calculator forexes to adjust position size and the risk in trading, but if want safer better start with smallest lot size, and you can measure the maximum risk on one order for every pip value.
#26 - February 09, 2021, 12:05:39 AM

  • Jr. Member
  • Posts: 98
  • Points: 55553
  • Likes Received: 7
  • Reputation: +0/-0
maybe how to calculate how much your capital is divided by the lot that will be used
trading according to your capital will avoid losses
because losses occur because we are not good at maintaining the lot
#27 - February 09, 2021, 04:52:56 AM

  • Sr. Member
  • Posts: 444
  • Points: 0
  • Likes Received: 31
  • Reputation: +2/-0
To apply money management properly, you should use a small lot, not to take too high a risk and if you are experiencing floting because of uncontrolled emotions so that the losses you get due to emotions will ruin everything from a simple technique to chaos.
#28 - February 14, 2021, 09:02:21 AM

  • Hero Member
  • Posts: 628
  • Points: 0
  • Likes Received: 59
  • Reputation: +1/-1
Calculation of good money management is quite difficult because traders must be able to control themselves from emotions and ambitions to be able to get large profits, so implementing money management requires a lot of effort so that it can be run according to the rules.

Traders must be able to set lots in each transaction and adjust them to the account balance so that they won't over lot.
#29 - February 14, 2021, 02:13:56 PM

  • Hero Member
  • Posts: 524
  • Points: 0
  • Likes Received: 65
  • Reputation: +2/-0
One important aspect of a business is managing money, because no matter how good our skills are in a business, if we are not good at managing money, the business will not last long.
So calculating the money management is needed at any time during this forex business.
#30 - February 14, 2021, 05:05:20 PM

Members:

0 Members and 3 Guests are viewing this topic.