The Best Money Making Strategies for 2018

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Many investors think that defining their risk to 2-3% per trade and calculate the distance for the stop loss and the pip value in every trade is money management. This is an important part of a money management strategy, but there is a lot more in it…

So, how can we manage money correctly?

1) Fixed $ Amount in draw downs

This money management strategy is helpful for recouping quickly from losses, the trader will trade a % of the account when successful but will trade a fixed amount when an unsuccessful trade hits:


10.000$ 2% risk = 200$ RR= 2:1 GAIN= 400$

10.400$ 2% risk = 208$ RR= 2:1 GAIN= 416$

10.816$ 2% risk = 216$ RR= 2:1 LOSS= 216$

10.600$ FIXED A= 216$ RR= 2:1 LOSS= 216$

10.384$ FIXED A= 216$ RR= 2:1 GAIN= 432$

10.816$ 2% risk = 216$ RR= 2:1 GAIN= 432$

11.248$ 2% risk = 224$ and so on…

It takes you only one trade to recoup completely from two losses.

2) Compounding

Compounding is a very powerful long term money management strategy. Basically reinvesting the gains of each successful trade and avoid making withdrawals for a relatively long period of time will boost your account like you never imagined!

3) Segregated capitals

This concept allows a more aggressive trading approach.

The trader split his total trading capital in two, one for risk and one for safe.

The risk account is the 5% of the total trading capital, the rest 95% is in a separated safe account. The trader will only trade with the risk account (5% of total trading capital), but will risk 15-20% of the risk account. Each time he doubles the account he recalculates the 5% of the total invested capital and re-split the money equitably in the two accounts.

Implementing one of those Forex money management strategies or mix a few of them will allow you to maximize profits and minimize losses the best way possible.

“Pro Retail Trading (David & Nathan) is a group of professional full time traders committed to educate and empower traders from all walks of life, no matter their experience level.”

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