Forex trading business is a very vast business in which you can make much money by investing some money. There is a forex trading money management strategy. With this strategy, you can save your account from a big loss. There are many mistakes which are done by big traders of the world. Finally, they lose their account.
I have brought a new forex trading money management strategy which is very compulsory to make money from forex. First of all, there is the size of your account. It means your initial investment. You need to take a correct level of risk on your account.
Many new traders are very aggressive. They are new so they want to make much money from the very beginning level. In this way, they use big lot size and blow their account.
Admit your mistake
The first thing to win from forex is that you should admit your mistakes when you are wrong.
Prepare for the loss
we should prepare for the loss because when there is a profit there is also a loss. Forex trading is risky business. if one of your stop loss is approached then you should not be crazy to get back this money.
Use Stop-loss and Take-profits
When you have entered in any trade then must put stop-loss and take-profits so your investment will be saved.
Trade on big time frames
Big time frames give you the actual position of the market. So try to trade in H4 or H1
Trading when the market is in movement
Try to trade when the market has good movements. Because in low movement there will be a big spread. Thre are market opening times of different sessions and market closing times of different sessions. Try to enter the trade in that sessions. we should invest with low spread offering brokers