MONEY MANAGEMENT - Part1

#MONEY_MANAGEMENT #Part1
What example can be consider as a good money management?

If you deposited 100 dollars in trading account, what should be the RISK % for you as trader to take a position? 1%? 2%? or 5%?
5% risk is MORE THAN ENOUGH for your positions.
Along your own chart analysis and before taking any position, ALWAYS check for RISK to REWARD ratio. Trading with good RR (>2) will ensure your survival and profitability in the LONG RUN!
When you open a position Buy or Sell with 0.01 lot , per PIP value 10 cent, (RR>2) (5% risk for 10% gain). If market goes opposite then you loss 5 USD but if market favors you then You gain 10 USD.
If you enter 8 positions (Buy or Sell) in a week, if 5 positions were with your plan and 3 were opposite. Then the outcome of your positions are WIN 50 USD positive and LOSS 15 USD negative, So the gross profit for the week is 35 USD which is 35% weekly!
It’s really too much profit as per money management but still you are is safe side. What about in a month? One month later you may profit around 140%.
Will be continue...
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Credit to DAY LIGHT
#WATM #daytrader #invest #moneymanagement #MM #risk #reward #grateful #survival