Forex Account Management!
When you serous about trading and going live with good amount. You pick up a broker and system, open demo account and trade for a month if everything is alright, you can forecast your drawdown and be ready to it.
You need to have a practice in a demo account. You have to develop mental discipline as well as control your emotions through experience. Do not forget about risk management.
You will always have drawdowns, regardless of how profitable your system is. To minimize drawdowns, you can diversify your systems into a Forex portfolio.
I remember a story from "The Richest Man In Babylon" where the young man was just starting to make money from his investments, and took his first profits and spent it. Meaning that he never got to compound his profits, which is the only way to achieve wealth long term.
If you're willing to lose all your profits, you'll get rich a lot quicker than someone who always 'eats up' their own profits.
Thad
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Forex Account Management!
Hi friends,
Would really like to know how do you manage your forex account when you cannot afford to loose the money you are winning!
Over a few years, I notice, most of us, trading on the retail side, have either Mini or Standard accounts.
One begins well, strictly adapting to a system-either manual or EA,but at one stage, with most of us, either the Time Frame goes wrong, or some indicator,factor turns reverse and instead,all our BUYs or SELLs turns negative-immediately reflected in the drawdowns!
I want to know how does one get away from such a situation with a negative drawdown and decreasing free margin/equity?
Does one hedge,if allowed by the broker and what are rules for hedging?
Does one hedge equal amount of buys and sells?
And ultimately how does one get out from this mess?
Pl.inform/suggest views...
earthy8