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Forex Account Management!

ruby14

New member
Forex Account Management!

Hi friends,
Would really like to know how do you manage your forex account when you cannot afford to loose the money you are winning!

Over a few years, I notice, most of us, trading on the retail side, have either Mini or Standard accounts.

One begins well, strictly adapting to a system-either manual or EA,but at one stage, with most of us, either the Time Frame goes wrong, or some indicator,factor turns reverse and instead,all our BUYs or SELLs turns negative-immediately reflected in the drawdowns!

I want to know how does one get away from such a situation with a negative drawdown and decreasing free margin/equity?

Does one hedge,if allowed by the broker and what are rules for hedging?

Does one hedge equal amount of buys and sells?

And ultimately how does one get out from this mess?

Pl.inform/suggest views...


ruby14
 

stovedude

Active member
Money Management is the very first key to success. First and foremost, only risk what you can afford to lose. It can make a losing strategy into a winning strategy. Second, demo your strategy for as long as it takes to get comfortable with it. You want to make sure it will fit your trading style and also prove profitable in the process. If you try to force the trade to make you money, you've already lost, because emotion is leading you. If you feel that you must make money fast, because you lost your job and Forex seems like a lucrative solution, you might as well give your money to the homeless.

It's like a school. You can't graduate until you've completed the learning process. That learning will probably be hard and painful, but I've always tried to learn from other people's mistakes first by reading and talking to other seasoned traders. That doesn't mean I didn't blow out accounts anyway. That's part of the process. You should expect it and plan for it, but do it first in demo! All strategies will have losing streaks, due to various factors, including you. It's better to sit back, take a deep breath, stop trading for the day, and learn constructively how you could have avoided the heartbreak (at least to minimize the loss).

Hedging can work sometimes, but usually it is applied too late and just adds margin. A good strategy with sound MM should have been the first priority. Hope this helps.

BTW, if you are in this situation that you described right now, you can tell us your position so we can discuss it to some length (we of course are not licensed financial advisors:D)
 

fountain_eee

New member
Forex has some disadvantages...one of these is, You can lose all of your money...but after all forex is the best trading system

 
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