Money Management
Manage risk.  Trade better.
Stock broker working in front of computers.
Currency pairs and their exchange rates displayed on a monitor.
Proper management of cash in a trader's forex account helps him/her attain better returns and also survive periods of draw downs resulting from:   1.  Adverse fluctuation(s) in currency prices.   2.  Consecutive losing signals generated by his/her forex trading system.
In addition, setting money management rules for online trading the signals of a system simplifies the process of deciding how much of a currency to buy or sell when acting on a signal from the currency trading system.  Therefore, money management plays a vital role in
Euro currency bills.
the success of a forex or currency futures investor and also in making currency trading easier.

Foreign exchange traders can set their own rules and criteria for managing the cash in their currency trading accounts.  However, advocates a conservative money management approach in order to maintain at all times a well capitalized account and suggests that as a general rule a forex trader use 20% or more of the cash available in his/her account as margin payment to buy or sell an amount of currency, even though the majority of online forex trading platforms have a 3% - 5% margin requirement and at some firms the requirement is as low as 2%. 
------------------------- currency trading formula:

money management + viable trading system+ self discipline=
Successful Currency Trading


Headlines in the news.  Economic, political, and social developments can impact the value of currencies almost instantaneously and for varying periods of time. suggested money management approach can be explained further with the aid of these examples:
                     Q:  What can be
                      a detrimental
                      mistake for a

Ans:  Overtading.
Establishing too large of a position in the market.

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