Money Management Principles

Do one of the worst mistakes that Forex traders can be felt, without sufficient capital trade.

The trader with limited capital will be worried not only a trader, always looking to minimize losses beyond the point of a realistic exchange, but also often taken out of the game before you get a feel for the commercial success of the method can replace n (), or models.

Exercise Discipline 
Discipline is probably one of the most abused word in education forex trading. But, despite the cliché ¨ | discipline is the main problem can lead to becoming a profitable company. Discipline is the ability to plan your work and plan.

It ¡¯s ability to save time and money, without urgent business, because you give discomfort at risk. Discipline is the ability to continue operating the methods and models, even after you have their losses. Do your best to the degree of discipline to maintain a distributor in the world.

Use risk-return ratios 
In the following, to the potential risk to reward them for the conditions and the victory is needed to break the relationship even in a venue.

Risk-reward ratio (in pips) and Win money is needed to breakeven (%)

40/20 (2 to 1) = 67%, 40/40 (1 to 1) = 50%, 40/60 (1 to 1.5) = 40%;
40/80 (1 to 2) = 33.5%
60/20 (3 to 1) = 75%
60/60 (1 to 1) = 50%
60 / 90 (1 to 1,5) = 40%
60/120 (1 to 2) = 33.5%

Important Notice 
Never risk more pips on a trade, then plan to do. It is ¡¯ t make sense to risk 100 pips in order to make only 10th Why? See example below.

Given the magnitude of earnings (cores: 10 )
Stop or seeds used in jeopardy: 100

You win 10 times 100 pips profit. He lost only once and that all the profits!

This kind of trade that makes sense and how the long term, guaranteed!