Money Management Forex Strategies

Mostly forex traders find it very difficult to survive in their early investments. New forex traders, being unaware about the money management forex strategies, loss all their money quickly. It gets difficult for a new forex trader to join the forex team without any prior knowledge about the forex and money management forex.

As a newbie forex trader, you need to keep three things in your mind.

1. Set the limit of your risk amount. Suppose you have capital of $50,000. Set the risk limit to 3% of your capital which becomes $1500. You should keep the risk percentage as low as possible. As a new trader, you will surely loss money. If you risk your maximum money then definitely you will have no choice left. Like if you set the risk limit to 10% per trade, then $5000 will be lost in a single trade. So set the risk limit as low as possible.

2. You need to set your stop loss as well. Stop loss will restrict you within your risk limits. Avoid all those trades which require stop loss but are more risky than you assigned limits.

3. Diversify you investment. If you invest all your capital in one trade, and you somehow loss the trade, then you have nothing in your hands. You need to diversify your investment. Invest initially in many different trades. Even if a trade seems very profitable and risk-free, never invest all amount in that trade.

Stick to these money management forex strategies and enjoy the game.