Let's talk money management

NO SL IS THE BEST MM EVERR!!!
joking...joking...

okay, here's my perspective of what I see as good mm is knowing yourself first.

You need to know your perspective of risk-averse trading, how many percent of equity are you willing to consider safe for each trade, and how your profit targets are WITH YOUR RISK. To me risk reward is BS, its either u are right or wrong - redlion.

Stop loss saves you in NORMAL market conditions. do you dudes and dudettes think a STOP LOSS is going to help you in a massive spike? expect some or big slippage...

Good MM to me, is having PRECISE if not ACCURATe entries, and that enough should be good MM.

To me mm is something natural you will find in your trading journey, and builds it itself along the way.

Well, actually, to answer your question - YES - I do think a stop loss will help in a massive spike, certainly a lot more than having NO stop loss, think about it!

I hope that you find Risk, Money Management and Position Size very soon in your trading journey

Read it again, from beginning to end, especially the beginning part.
I don't think they said use no SL.

Yes, I realize that, so technically you are correct, but does not really enforce the idea of using stops either.

I was answering the direct question, as highlighted, which was, do I think a Stop Loss is going to help in a massive spike?

This question infers that, stop loss won't really help you, so why use one?

My answer was and still is YES, I trust my stop loss, and they certainly help more than having no Stop Loss (which is the only other option)

Also, goes on to say, "Good MM to me, is having PRECISE if not ACCURATe entries, and that enough should be good MM."

further suggesting the no stop loss, to me at least, YMMV.

Now you have the secret, PRECISE entries, that enough should be good MM

First, you have to understand that using 1:50 leverage is really risky. If you are using a demo account with a purpose that one day you will trade with a real account, you have to play according to the same rules. I think that as a beginner, if you have a 25K account, you can easily play with 1:1 or 1:2, just 0.2 – 0.5 which is a pretty large size. Is your first account going to be 25K? if not, open a new demo account with a balance that will be similar to your future-live account. Good LUCK

You can buy 1 standard lot, and then trade out over time by selling mini/micro lots.


My approach to money management is derived from options trading, and it seems to suit to Forex very well...

Basically, my MAX loss will be 3% of my overall account. Based on my trading rules, I will either go to MAX loss, or I will trade out earlier... but again this is dictated either by the hard stop loss or by stingent rules from the chart that says the trade is going against me- there are no grey areas here...

I let my profits run, and use trailing stops to get out of the position if it is going against me - I have no ard profit max, as my strategy works in a way that gets me the most I can without me having to stress about it...

The most important thing I have seen on thise thread is your SL giving you wiggle room, an dthis is where i see options trading coming in. On options, it is all to do with time. If you think it would take 1 month to get to where you think it should, you buy 2 months for that wiggle room. The same with the stop loss. My strategy suggests that I should always be on the winning side (yeah right!!!) but it is always having that wiggle room to ensure that I do go to profit.

Which is actually a good point... if you had unlimited wiggle room, you shoudl always go to profit....

It might just take a couple of thousand years...