MM (Money Management) is of course a vital topic, and is of equal importance as Risk Management, Trading Strategies, Trading Psychology, and Trade Management.
what is Money Management ?
Money management is a method to deal with the issue how much risk should the decision maker / trader takes in situations where uncertainty is present?
The core goal of successful money management is maximizing every winning trades and minimizing losses. A master of money management is a master Forex trader!!
What is Risk Management?
Risk management in fact is your choice how much risk you want to place on a trade. You are always in control how much risk you place on a trade: whether that it is 1% or $100, but I would recommend using a standard% risk (not $) of your designated trading capital. Every trader’s first goal is to preserve the trading capital, which is achieved by being very disciplined in the field of risk management.
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