Money management is very important in Forex trading. Money management includes
*Trade Size: you need to decide your trade size according to your total investment. You cannot use all of your money in one single trade. According to expert one should not use 10% of the portfolio in one trade. 5% is best.
*Stop loss set: you need to decide your stop loss for every single trade according to your investment. You should not have a longer stop-loss than your average profit trade. Stop-loss should not be more than 2% off the total investment.
*Trade Size: you need to decide your trade size according to your total investment. You cannot use all of your money in one single trade. According to expert one should not use 10% of the portfolio in one trade. 5% is best.
*Stop loss set: you need to decide your stop loss for every single trade according to your investment. You should not have a longer stop-loss than your average profit trade. Stop-loss should not be more than 2% off the total investment.
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