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This is because money management is barely an afterthought for so many traders.

Many people avoid the topics of risk and money management because they realize that by controlling risk they will not become rich overnight. But the fact is that they will not become rich at all if they don't learn how to manage money.

One of the pillars of the industry is the search for the holy grail and indeed the industry is infatuated with trading systems. Many traders, specially those who go through that initial phase of frustrating losses, look for mechanized methods of trading that just generate entry and exit signals to follow, no questions asked. However, they rarely search for a a system of money management able to generate "signals" that dictate how to size and managepositions. But the reality is that these techniques exist and, although being mechanical, they are much more effective than mechanical buy and sell signal generators.

Have you ever stopped to ask yourself that question: if money is to be made through trading systems, why the big majority of individual traders end up break-even or losing money? This is because money management is barely an afterthought for so many traders.

While most novice traders think there is some kind of order to the market that only few people know, and tend to focus on finding an inefficiency or an edge in the markets, the greatest opportunity for profit is often found in amoney management method. The key to wealth accumulation in the markets does not come from knowing where you get in and out. Neither it comes from being able to accurately forecast market direction.

Successful traders are those who realize that money management has to be part of the trading plan. Sadly, many people never even come to this realization. Read More


Do you want to learn more?

VIDEO: MONTHLY WEBINAR: Exploring the Coast Line of Foreign Exchange Land - Part I - Gonçalo Moreira
VIDEO: MONTHLY WEBINAR: Exploring the Coast Line of Foreign Exchange Land - Part II - Gonçalo Moreira
VIDEO: MONEY MANAGEMENT - Why your money management sucks and what to do about it! - Dirk du Toit
REPORT: Investing in currency - Richard Olsen











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GBP/USD attracts some sellers below the mid-1.2700s, all eyes on Fed, BoE rate decision

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The GBP/USD pair remains under some selling pressure during the early Asian session on Tuesday. The uptick in the US Dollar above 103.50 and higher US yields provide some support to the major pair. Markets turn cautious ahead of the central bank meetings, including the Federal Reserve and Bank of England interest rate decisions.

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USD/JPY pares gains below 149.50 ahead of crucial BoJ policy decision

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USD/JPY is paring back gains below 149.50 in the Asian session on Tuesday, picking up fresh bids. Traders keenly await the highly-anticipated Bank of Japan policy decision. The BoJ's outlook on the negative interest rate policy and the Yield Curve Control (YCC) will play a key role in influencing the Japanese Yen. 

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Editors’ Picks

USD/JPY pares gains below 149.50 ahead of crucial BoJ policy decision

USD/JPY pares  gains below 149.50 ahead of crucial BoJ policy decision

USD/JPY is paring back gains below 149.50 in the Asian session on Tuesday, picking up fresh bids. Traders keenly await the highly-anticipated Bank of Japan policy decision. The BoJ's outlook on the negative interest rate policy and the Yield Curve Control (YCC) will play a key role in influencing the Japanese Yen. 

USD/JPY News

AUD/USD creeps lower to test 0.6550 ahead of RBA’s decision

AUD/USD creeps lower to test 0.6550 ahead of RBA’s decision

AUD/USD is grinding lower to test the 0.6550 level in Asian trading on Tuesday. The Aussie Dollar stays on the defensive against the US Dollar as markets prepare for the Reserve Bank of Australia's extended pause but the Bank's rate outlook will hold the key. 

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Gold awaits Bull Flag confirmation and central banks’ verdicts

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Gold price is holding the previous rebounding in Asian trading on Tuesday, as buyers take a breather ahead of the upcoming key central banks’ policy decisions. The US Dollar is stretching higher amid a risk-averse market environment, shrugging off some weakness in the US Treasury bond yields.

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