Video: What is Money Management in Forex
Investing in assets such as stocks, bonds, cryptocurrencies, futures, options, and CFDs involves considerable risks. CFDs are especially risky with 74-89% of retail accounts losing money due to high leverage and complexity. Cryptocurrencies and options exhibit extreme volatility, while futures can also lead to significant losses. Even stocks and bonds can depreciate quickly during market downturns, and total loss can ensure if the issuing company fails. Furthermore, the stability of your broker matters; in case of bankruptcy, the presence of an effective investor compensation scheme is crucial for protecting your assets. It's vital to align these investments with your financial goals and if needed, consult with financial professionals to navigate complex financial markets.
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Last updated: 24/07/2020
Any successful trading strategy needs an adequate money management strategy. Once you figure out how much you can safely allocate to your real trading account, you have to work hard to protect your capital. Above all, you must replace your common urge for profit with a need to protect your account equity from losses. The simple reason? You have to survive longer in order to win, particularly given the fact that every trader has 90% chance of consistently losing in Forex.
Part of our multimedia library, learn in this video what is money management in Forex and how to adequately manage your account equity when trading.
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