When trading on Forex market, it is necessary to know how to properly manage your funds, how to calculate the total amount of funds needed to get enough profit, and how to avoid losing all your money. To achieve these goals, there are special asset management methods which can help you in managing your fund:

  • No Money Management: Most traders do not calculate the total amount of money required to open a position, not do they estimate potential profits and losses. Money management is also a kind of technology, but if the initial capital is not much, many unsuccessful traders will completely ignore it.
  • Multiple Contracts: With multiple positions in different tools in the fore market. Traders can make a profit if the price moves in the right direction. Profits can be substantial, but losses can be high.
  • Fixed Risk Amount: Depending on the total amount of funds available, the traders are determined to take a risk when opening a position. The trader then only opens trades that do not exceed this amount.
  • Fixed asset ratio. This technique is similar to the former, but with a small difference: the trader determines the specific proportion of the total amount of the account to take the risk, not the specific amount of assets.
  • Adjust the transaction based on the results: It is necessary to track the statistics of all transactions (loss, profit and the relationship between them). Having determined the relationship After understanding the relationship of the outcome of the transaction (the profit or loss is one after another or a certain number of losses will come after the profit), the number of transactions should be increased after several positions, or Reduce the transaction amount when the loss is expected.
  • Asset curve trading: Most people are familiar with the moving average, which is the signal of the right time to enter and leave. According to this method, the moving average (long-term and short-term) is used to predict the outcome of the transaction. If the short-term moving average of the asset curve is above the long-term moving average, it can open a position and is likely to make a profit. If the short-term moving average is lower than the long-term, then it is best to wait for a second.
Author's Bio: 

I'm Mansi Dandekar, I am sharing an article about Fund Management Method. Here is more information on the Forex Trading Tips and Free Currency Tips.