The money management is a method of risk management that maximizes the chances of success. It features rules based on adjusting the size and position of management that must be followed scrupulously stops.

Originally posted by FXlord

The money management is a method of risk management that maximizes the chances of success. It features rules based on adjusting the size and position of management that must be followed scrupulously stops.

 

Money management means minimizig the riks and losses and once that is done it will automatically lead to higher profits as money saved is money earned. So money managment is a path to success.

The money management is essential to making money in financial markets. It places limits on the trader to control the risks and benefits of each position.

A trailing stop loss that you mention of 5 pips is going to stopped out every single time - you are unlikely to make any money that way.  The amount of times the market moves within a 5 min or 15 min period back to the same price level is very high, and if you rapidly set a trailing stop you won't get anywhere.  I agree with setting SL.  One of the hardest things in trading is losing money, but you should think about limiting risk.  The other thing you should remember that if you are drawing down, you are losing that money anyway.  Another thing thats hard about SL is when the SL is cut out and the price returns - when this happens, its not the SL that is at fault, it is your entry (too early/too late/in wrong place).

Money management is must in forex trading and we should have to trade with some discipline so that we can make a large amount of profit through forex market .

Money management is must and we should have to take care of it and we should have to trade with some discipline and its better if we be more attentive on market for good trading .

Money management is also necessary in forex trading so that we can able to make some good profit through here and as we are doing business we should have to do it.

Money management is the vital thing in forex trading then only we can able to trade more carefully and can able to make good profit but its also necessary to take this business more seriously.