Simple Forex Trading Money Management System that Actually Works!

Forex trading money management system is a very important thing that a trader has. To protect your trading account balance is tough especially when your emotions are driven by greed and fear.

If you are one of the many forex traders who don’t know how to manage money and protect your capital and your current profits as well, here is the guide for forex trading money management system that actually works.

Why you should build a forex trading money management system that actually works? It is because traders want to play the game and win and not just play the game and in the long run, lose.

Staying in the forex trading game is tough. To stay in the game, you need to protect your trading balance and grow it as long as you can. No forex traders wants to lose money and blow their account in just a single trade or a single day.

It is true that forex trading is profitable. It is also true that forex trading is risky. However, you can become profitable and at the same time minimize the risk through the forex trading money management system that (ACTUALLY) works.

The  Number Speaks Itself
Let us find how to really build a forex trading money management system that actually works?

First, think about a scenario;
If Joe (forex trader) has a $10,000 trading account balance and want to earn as much as 30% per month 0r $3,000, what he should do? Will he trade $30 and get 100 pips?

Risk Only Not More than 2%
For $10,000, Joe should only use (trade) 2% of his account balance. For $10,000, he should trade $200. And what we should do with $200 to earn $3,000 his target profit per month?

Answer: 

If he is trading multiple entries, he will divide the $200 from the entries (say for example) 5 entries. EVery entries, he should only use $40.

Board Lot Calculation

If trading entry has a stop loss of 100, you should divide that $40 into 100; therefore the board lot is $0.4

Forex Trading Money Management System

If this works for every trader, it will also work for you. But always remember that this forex trading money management system is only an idea. It is up to you now (assuming you are the Joe mentioned in this page) on how you can earn 30% profit per month in your trading journey.

Note that the 2% example above is just an idea. You have to think when your trading account balance became $1,000,000 one million dollars. Would you use 2% or no more than 1%? 2 percent of one million dollars is $20,000. Is your risk appetite fitted in trading $20,000? Why not, if you can make another million dollars!

Always follow Daily Investing Tips www.InvestmentTotal.com for more forex trading tips, and forex trading money management system that actually works for every traders and beginners in forex world!