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Practical Formula for Money Management

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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.

The important thing is not to use risks that are too large, use a maximum of 5% of each transaction, because if it is above then our psychology will be difficult to stabilize, because the risks we take are too large beyond our ability
#16 - February 10, 2019, 12:57:35 PM

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The important thing is not to use risks that are too large, use a maximum of 5% of each transaction, because if it is above then our psychology will be difficult to stabilize, because the risks we take are too large beyond our ability

which cannot be avoided when I lose without realizing I am raising a bigger lot and causing me to experience a very big defeat, it turns out that we are very deadly.







#17 - February 10, 2019, 01:02:48 PM

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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




#18 - February 10, 2019, 01:04:50 PM

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hello, what about if we deposit 50$ and use lot 0.01, and got floating, and what is the great moment to cut lose and take profit ? because i got panic somehow ? i kind of confuse about this money management thing
he 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



#19 - February 10, 2019, 01:05:51 PM

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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.
Like

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







#20 - February 10, 2019, 01:52:18 PM

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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


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.
#21 - February 10, 2019, 02:03:51 PM

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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.

If we can apply good and healthy management in our trading, our psychology will be easy to control, because when we trade with minimal risk, we will know that our trading will be safe and we will be comfortable doing it, so the psychologist will be easy to controlled
#22 - February 10, 2019, 02:42:21 PM

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which cannot be avoided when I lose without realizing I am raising a bigger lot and causing me to experience a very big defeat, it turns out that we are very deadly.



For this reason, commitment and consistency is needed to run the money management that we have made. because it's useless we have good money management if we don't apply it in our trading
#23 - February 10, 2019, 02:44:11 PM

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



You can start by always limiting the risk in each trade that we do, the maximum is 5% of the capital we have, less than that is better, and do it consistently in each of our trades, simply like that you have applied money management
#24 - February 10, 2019, 02:46:54 PM

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For this reason, commitment and consistency is needed to run the money management that we have made. because it's useless we have good money management if we don't apply it in our trading
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.














#25 - February 10, 2019, 02:49:35 PM

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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



#26 - February 10, 2019, 02:53:00 PM

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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



ready ...
I will learn a lot and will master it because all it takes is a process and the process requires a very long time, let's uphold the progress of this business.
#27 - February 10, 2019, 02:55:46 PM

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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


It is legitimate to have a system that, according to you, is able to make your account survive and continue to grow, but each trader has its own character that makes the success of each trader different even though it is the same as the one made. 10 $ and simple is how the account continues to survive and can grow sustainably ... for me it is fantastic if applied to beginner psychology maturity
#28 - February 10, 2019, 03:17:23 PM

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It is legitimate to have a system that, according to you, is able to make your account survive and continue to grow, but each trader has its own character that makes the success of each trader different even though it is the same as the one made. 10 $ and simple is how the account continues to survive and can grow sustainably ... for me it is fantastic if applied to beginner psychology maturity

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
#29 - February 10, 2019, 03:19:31 PM

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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
well the content of our discussion is actually that, whatever the system we use must still maintain a large account resilience by owing risk and ow rewards, so almost all traders agree with the strict application of money management
#30 - February 10, 2019, 03:26:42 PM

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