Money management is the most important pillar of working in the Forex market.
Always observe these tips;
- Never invest more than 5% of your Margin in one currency pair. (Of course, this percentage could be more in the Leverage less than 100)
- Do not use more than 20% of the Margin.
- Entry to and exit from any trade at a reasonable price doesn't only depend on your knowledge, but following up your strategy with patience can lead you to success.
- Choose a broker that you feel you can work with it better. It is better that you choose a broker which is suite your personality, time and living habits.
- Do not put all the eggs in one basket. Diversify your portfolio as much as you can. Concentrated portfolios are exposed to more risk. Read more about diversification here.
- Read fundamental news to understand the market and chose the right assets.
- Consider more advanced portfolio management techniques like core-satellite portfolio system.
After you become a successful trader you may establish your own roles. For now, it is better to follow the above-mentioned tips.
Hopefully, you can be successful with proper money management.
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