When it comes to forex trading, the one big reason when traders fail is because they lack the all so important aspect of Money Management.  The art of knowing what to do and how to treat your money.

Money Management is much bigger than simply knowing how much to risk per trade. It basically covers -

1. When to Trade

2. How much Money to risk

3. When to exit the trade

4. How to make sure maximum profits ae derived from every trade

5. How to handle the trade that is running in loss

and much more than that.

I was not surprised when I read in one of the magzines that 30% of all traders fail because they don't apply money management in their trades. And another 15% fail because they apply the money management techniques incorrectly.

People carry a lot of incorrect notions about Money Management. Lets look at one of them -

One common misconception that most of the traders carry is "Stop Loss in every trade should be as low as possible".

Well I agree to certain extent. The point where I don't agree is that when this theory is implemented in an incorrect way. Most of traders place very unreasonable stops in the quest for having tight stoploss. For e.g. if you are swing trading on a 1 hr chart, if your trade has stop loss only 30-35 pips away from the point of entry, then 3 out of ten times the trade will end in loss.

Why? Because you have not given the currency pair any chance to move around. The larger the time frame the more the space is needed by the currency pair. For e.g. if you are trading in a 15 min. chart, a stop loss of 20-25 pips is reasonable, but when it comes to a 1 hr chart, you must be ready to risk 45-50 pips. This number gets higher if you are trading on a daily chart.

 

So, it is necessary that before placing stop loss you must always check the timeframe trading at.

This is just one such consideration from Money Management perspective. Its a must know concept for the traders. But I was surprised to see how few people actually know this.

 

But I know the reason why is that!! Thats because there is hardly any forex trading course that actually covers the aspects of Money Management. All of the courses just try to cover a trading strategy.. thats it.

This led me thinking "Why should'nt I give people a course that not only teaches them an amazing trading strategy, but will also cover the ingredients of Money Management"

"Why shouldn't I create a course that is the FORMULA for SUCCESS in FOREX trading"

Thats what led me to create the multimedia comprehensive Forex Trading Course called "Forex Success Formula"