Many people think
long as you find a good entry point,
the key to success in fact, that is only a small part of a successful transaction using the right
management tools is the most important component of successful trading whether
is stocks, futures, or foreign exchange, successful traders always put the right money management methods as the first principle of making money. 7 golden principles of money management 1. under any single, there should be a stop loss to minimize losses is the fundamental guarantee of long-term profits, so in order to minimize your losses, under any single should have a stop loss 2. risk / profit ratio should be at least 1:1.5 When you want to place a single, be sure to think clearly about the possibility of profit
loss assuming that the space for profit is ￥ 4000, and the loss of space is only $2000, then the risk/profit ratio is 1:2, it is worth a try. 3. Do not overload your account because forex trading can magnify the amount of capital control, usually the ratio is 100:1 means that $1000 can control 100,000 U.S. dollars then this function of capital amplification is like a double-edged sword, high returns accompanied by huge risks so prudent investors will usually be the maximum loss of each control within 10%, the profit will be Stable and long-term so our goal should be a good investor, not a speculator 4. accept failure, as soon as possible to shift attention to the next transaction No one in this world can guarantee that every transaction he is making money, so when you lose money on a transaction, forget about it as soon as possible and shift attention to the next transaction otherwise, you will lose more and more and can not extricate yourself 5. Set a realistic and viable goal of vitality Do not get emotionally involved with money simply see every single transaction as a business transaction, do not get emotionally involved If there is a loss, learn to accept it and look forward to learn how to accept failure is more important than success, it is similar to our Chinese old saying, failure is the mother of success without emotional factors, follow the trading principles to trade is difficult to adapt at first When you trade profitably, protect your won profits Protecting your profits is another important factor for you to gain stable, long-term profits When you are in a profitable position, it is important to raise your stop loss accordingly so that although you want to hold the position for a longer time and gain more profits, at least Although everyone knows that it is foolish to trade more than you can afford, this foolishness is still very common among us traders. Monthly living expenses, retirement savings, and do not borrow money to trade forex because if you do so, your mentality is no different from that of the average gambler, and the end result is usually a loss of money!