Dear Traders
Do you know a good book about money management ? I saw two articles uploaded by Mr.PiP, but I want to learn something more, becouse I know that money management is really important. How much do you risk per one trade in % ?
In book uploaded by Mr.Pip "DCASTFX_fixed_ratio_money_management" - I saw that I shouldn't see on % of my account but I should try this formula :
Current Balance + (#contracts * Delta) = next increase in contracts.
So this money management is based on contacts - but I'm little confused, becouse if I play in 4 houres timeframe, I will risk for exemple 50pips, but when I will find for exemple ABCD Pattern on 5minutes chart I will risk 8 pips, so this formula will still correct ?
In 4H timeframe I can lose 5% of my account, when in 5 minutes chart I can lose 0.5% of my account with that same formula.
Can anyone tell me what i say i correct or I'm wrong ?
Sorry for bad English.
Thanks !
Do you know a good book about money management ? I saw two articles uploaded by Mr.PiP, but I want to learn something more, becouse I know that money management is really important. How much do you risk per one trade in % ?
In book uploaded by Mr.Pip "DCASTFX_fixed_ratio_money_management" - I saw that I shouldn't see on % of my account but I should try this formula :
Current Balance + (#contracts * Delta) = next increase in contracts.
So this money management is based on contacts - but I'm little confused, becouse if I play in 4 houres timeframe, I will risk for exemple 50pips, but when I will find for exemple ABCD Pattern on 5minutes chart I will risk 8 pips, so this formula will still correct ?
In 4H timeframe I can lose 5% of my account, when in 5 minutes chart I can lose 0.5% of my account with that same formula.
Can anyone tell me what i say i correct or I'm wrong ?
Sorry for bad English.
Thanks !