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Sunday, September 27, 2009

Forex Money Management Systems

/ On : 3:41 PM/ Thank you for visiting my small blog here. If you wanted to discuss or have the question around this article, please contact me e-mail at herdiansyah hamzah@yahoo.com.
Are you looking for the highest returns and lowest risk Forex money management systems? Many traders have very profitable trading methods that they have learned from experienced professionals, yet they continually lose money because they do not know how to manage their money properly. In this article, I will demonstrate to you why Forex money management is so crucial and why it may even be more important than your main trading system.
Examples of How Important Forex Money Management Systems AreLet's say for example that a person has a trading system that has generated 80% returns historically. He gets very excited and thinks that he can trade with big lots since the chances of winning trades is very high. However, he failed to consider the fact that he may start experiencing the 20% of losses first before he starts enjoying the 80% of winning trades. Without proper management rules, the trader may lose his entire account even before he starts profiting.
Another point to note is that a percentage loss first requires a bigger percentage win later to break even. For example, a trading capital with $1,000 experiencing a 10% loss will end up at $900. A 10% win later and the account will end up at $990. In this case, the trader would need to make a profit of 11.11% to break even
. Why is it Necessary to Have Tight Money Management Systems?As demonstrated by the examples above, no one can anticipate when profits or losses will be made. Measures need to be taken just in case the losing trades happen first.
3. Getting Automatic Forex Management Systems with Trading Robots One way to deal with these issues easily is to download trading robots that trade automatically. This type of trading software reduces trading lots automatically when the capital goes down. I personally use them and I do not need to worry about managing my capital any more.
Are you looking for The author has found a 100% automated Forex Trading Robot that is making him over 40% returns on his capital every month. Check out the website above to find out more

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