You are viewing a single comment's thread from:
RE: Trading tutorials for beginners - PART 1: money management & probability
Hello @calumus056, I was hoping for a little more information for this post. I would like to share my post which starts with banking & effective money management for investing "the barefoot investor". As I believe its quite an important one steps into trading. I've already been paid for this post so feel free to use any information.
I like to use a 2% rule (2% of capital per trade) for trading forex. Capital drawdown is the biggest reason why people get out of trading, people risk too much in a particular trade. I would like to also share a 19 part tutorial video from youtube about getting started in forex trading this guide includes risk management, anaylsis & psychology.
This is just part 1 of many. It's a really bad idea to go looking at charts right away without understanding what to expect. Many more tutorials to come!
I know everyone uses 2% rules and such. That's exactly why i wrote this article. In this article i explain how you can calculate the exact risk you prefer. 2% for an aggressive strategy is probably too much and too little for a conservative strategy.
Capital drawdown is part of the risk of ruin formula by the way.