For many there is no doubt that money management is one of the best skills to develop to be successful in Forex.
If I had to choose between an operator who had money management skills but nontechnical and one with excellent technical knowledge but without proper money management, safely I give my money to the first, always.
Perhaps it is inconvenient for those who wish to convey knowledge of Forex, express this view. However, in all circumstances, we prefer an operator with sufficient technical knowledge and sufficient knowledge of money management.
All we prefer, in the first instance, to achieve excellent technical expertise to develop the ability to predict market movements. This would be the ideal and good work on it. But the truth, the truth is that talent is not what produces profits in the long term. That honor belongs to development and skill of money management.
It is a simple strategy to be successful: manage your account, your money, so to be able to withstand losses not let him out of action. Losses being part of the business, you must handle so that we can recover and move forward. New entrants care how much can earn; advanced traders deal as can lose!
Successful traders take minimal risk and keep your losses small. They know reject transactions that threaten large amounts of capital no matter how promising the transaction. They cut losses planned way in advance.
Operators generally lose, they risk more than they should, let losses run in hopes that prices will rebound and there is the beginning of the disaster.
This is not to operate to operate nor seek "the business of life", the operation that you become rich. These are operations that produce losses than gains so making equal amount of winning-losing operations, the result is positive, for example.
The secret is to perform only the operations that have a high probability of success.
Losers operators do not have enough patience to wait for the opportunity and they begin to risk without discretion, on exposed and do not know where to go.
Winners operators are patient, waiting for the opportunity of easy gain, conserve and care for the capital. When that time comes, they take advantage. Point. This is the plan.
You can not control the movements of the market. You can only control your emotions. You need to be disciplined, patient ... have control of your attitude and your account. And this is also learned.
