How you define Money Management, give it all to the broker??

[Jethro69]

I'm just wondering.

The more experienced / professional traders for sure have more than one trade open at a time, so it make perfect sense not to risk more than 1-2% of the account.

Let's say I have now about 100K on my account, I'll use half of it for Forex, so should I now wire a 50K to my Forex account, and do my 1% trades, and maybe 1-2 addons, as a newbie no more than 4-5 Trades anyway. Or would it be Ok, to put 10K in and trade with 5%.

I'm not happy to have too much money on one account, the past told us ,

Just courious how you guys see that.

[francisrama]

Hello Jethro,

I'm not saying I'm right, I tell you just what I'm doing...

I started with 10K in my account. Every month whatever is above 10K, I take it. So my account is stable at 10K (or bit less if bad trades...which is not the case with AIMS...my 3rd profitable, very profitable month!!!)

I'm sure more experienced buddies will advise you as well.

KR

[immy]

Hello Jethro,

I'm not saying I'm right, I tell you just what I'm doing...

I started with 10K in my account. Every month whatever is above 10K, I take it. So my account is stable at 10K (or bit less if bad trades...which is not the case with AIMS...my 3rd profitable, very profitable month!!!)

I'm sure more experienced buddies will advise you as well.

KR

Hi

I do exactly as Fran. I never put more than 20K with one broker. You have to do your maths correctly using a software/excel sheet and allocate a percentage of that to the broker and then take risk accordingly. But trading 5% per trade must be 1% of your total available money for trading otherwise , you'd get into the trap, which is "if i had 100K I would be trading this, but I have only 10K, so lets suppose I have 100 and trade 1lot per trade per 10pips" kind of thing... money managment does not mean, "give all your money to your broker" it means "Manage your Risk per trade, per campaign, per broker, per month, per week" It means manage your money correctly. I hope it makes sense. just to repeat myself. Money Management is the Backbone of All Trading.

[Jethro69]

Yep, exactly what I thought.

Thanks guys (wd) (wd) (wd)