Global Forex Trading: How can You Manage Your Money

How to manage your money in global forex markets are the best tips you should be looking for than any analysis. If you lack management all the analysis you know will not save you from loosing everything a single day.

You may be the best in analyzing the market and get 99% straight trades right but if you don’t have proper money management that 100 trades would wipe you out of the market. And you may be the one who don't know how to analyze the market and have a proper management system; you should know the fact of minimizing the risk of your capital. So if you get 10 straight trades wrong and with the proper money management system, you still lose only 10% of your capital! That shows that money management is one of the best tips you must know in forex market. Managing your money work better when combine with analysis /system. See if you demo trade you will be emotionally balance but when you trade life you will need to control yourself the more and be emotionally balanced.

These problems of emotion can be minimized by applying management to your trading plan that means you must minimize your risk at all times. So you don't trade to lose, you just trade one or you don't trade even 1 full lot, you trade 1 mini lot and you keep trading that one until your actual results confirm that you should increase position size. Note these

1. If your account is $5,000, trade using only, 8 mini lots, your risks is $250
2. If your account is $4,000, trade using only, 8mini lots, your risks is $200
3. If your account is $3,000, trade using only 6 mini lots, your risks is $150
4. If your account is $2,000, trade using only 4 mini lots, your risks is $100
5. If your account is $1,000, trade using only 2 mini lots, your risks is $50
6. If your account is $500, or less trade using 1 mini lots, your risks is $25

I tell you, do not use more than 5%-10% of your money. No matter how big your account is. Remember you can lose it all in a minute if there is no proper money management.