As I’ve said so many times, yes we need a strategy and we must always look to improve our market analysis. The markets are constantly changing as geo-political and economic circumstances are in a constant state of flux. We always have to be aware of live market conditions and adapt our strategies accordingly. However, the best strategies and recognizing potential trade setups count for nothing without risk management and money management principles to follow. This is the area of expertise which requires strict guidelines and an understanding of what our goals are. How much will I lose if the trade goes against me? What are my goals if the trade goes the right way? Where to place my stop loss and take profit levels? Far too often a trade is opened without these levels, parameters and money management exercises having been calculated and the results come as a surprise. By fixing these variables into exact profit and loss amounts, there will be no surprises and the emotions of fear and greed are eliminated from your trading business.
FXtrademark: Money Management – Setting Goals
