The basis of this method was used trade fixed percentage of the total capital, which could take a chance at the conclusion of the order. For the beginning trader should be defined with a percentage of total equity, which he can take the risk, we recommend a maximum of 10%. The total volume of transactions does not exceed 15 - 20% of the deposit. From this it follows that the conclusion of orders with a total capital of $ 100 a trader can use only $ 10. Next you need to calculate the number and volume of orders - if the order value of $ 1 per 1 volume, it can be concluded with 10 orders of 1 or 2 orders with volume 5 (it solves the trader).
On successful conclusion of warrants (the trader a profit), you must again rely on the interest rate is the current capital, as well at the wrong conclusion warrants. More details about the calculation of the minimum lot can be read in the article - " Optimum trading lot in the Forex market "
In this method of money management you need to consider the following factors:
1. Each instrument has its price, so you can not use the calculation of the fixed fraction of one financial instrument to another.
2. Have sufficient capital and with the minimum price of a financial instrument should not be higher than 10% of the capital.
3. A failed custody order losses may be higher than the order price. Therefore, we must insure themselves stop orders.
The method is again simple, but it gives a good result, since it considers all the basic market factors (risk of losses, profits, capital flows, rising interest rates). For the beginner, this technique will be a great base because that eliminates a complete loss of seed capital (according to statistics 80% of beginners lose their initial capital for the first five transactions has already been mentioned on our website.)
For a trader, money management as important element in trading on the forex market, as well as fundamental, technical analysis . Capital - this map work trader, which also needs approach.