Money Management is the most important aspect in making forex transactions which will bring long-term profit. Larry Williams turned $ 10000 in $ 1.1 million in a single year. He said in his book "The Definitive Guide to Trading Futures" (Vol. II): "Money management is the most important chapter of this book." Many traders say that money management is the largest contribution to the success achieved on capital markets.
In short, Money Management means that for a transactionyou must consider a possible loss to be less than winning effort. For example, if in a transaction your TakeProfit will be larger than StopLoss.
Thus, even if you have a transaction that will get lost, respecting Money Management you will allways win because the loss will be lower than profit.
In short, Money Management means that for a transactionyou must consider a possible loss to be less than winning effort. For example, if in a transaction your TakeProfit will be larger than StopLoss.
Thus, even if you have a transaction that will get lost, respecting Money Management you will allways win because the loss will be lower than profit.
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