The Forex currency market has long become commonplace, because there is no such person who would not hear about him. Perhaps every second even tried to make money on it, but managing Forex money is not an easy task.
As a rule, in order to start trading, you need to study the theory of Forex - money management, as well as have constant access to the Internet.
The most important plus is that you can trade when you want, and with the amount that you have.
In other words, Forex earnings, money management - all this is called "money management".
There are rules, compliance with which will help you at first save your money, and possibly increase it:
- Firstly, when you decide to trade Forex, soberly assess your financial capabilities. As mentioned above, the risk of losing money for a novice trader is very, very high. Based on this, start with the amount whose loss is not a tragedy for you. Moreover, this risk persists throughout the first year of trading;
- secondly, if you have a real opportunity to allocate about five thousand dollars for trading, it is better if you spend part of this money on your training. You will minimize possible risks and learn the basics in a short time (rather than with self-study). In this case, it is recommended to allocate literally 20 or 30 percent of the total possible amount. As soon as you lose money, you can easily replenish your deposit by another 20 percent;
Let's look at an example. If suddenly you have the possibility of losing a hundred dollars, then the deposit will be $ 20.
Undoubtedly, $ 20 for trading is a very small amount, even an extremely small one. But there is a way out of any situation, as well as this one. Effective Forex money management is possible due to the large type of number of accounts:
- demo account. Ideal for beginner traders, since you will not lose anything on it, because the money is virtual. But you will gain serious experience, because the theory never makes sense without practice. Of course, with such trading there is one limitation: it is worth putting serious psychological protection in your brain, since this type of game on the exchange can turn you into a gambler who cannot manage his capital;
- cent account. Of course, this is real trading for real money. Their dollar account is converted to cent, that is, $ 20 will be listed on the account as 2000 cents. Plus - you learn to win and lose;
- micro. You trade in dollars, but the minimum lot is 0.01. Better if you can start with an amount of three hundred dollars.
Actually, the management of Forex money with the minimum possible amount on this can be completed. All other types are more suitable for professionals.
There is such a thing as pamm accounts, when an experienced trader simply helps others to earn money. Forex money management occurs without your direct involvement. Who knows, maybe after a while you will reach such a level of money management that you can provide such services to others?