Learn to Trade – Trading 102 – Basic Money management
In this session we cover
* Rule of 72 basics (Make sure you watch Trading 101)
* A quick review of the rule of 72
* Basics of TPSL ratios (also known as Takeprofit / stoploss, TP/SL)
* using TPSL ratios – How to maximize profits and minimize losses
* How you can still be in profit with only 3 out of 10 winning trades
* TPSL and Hedging – a powerful technique
The Documentation is available for free to registered Platform users. You can download the platform completely free from http://traders-hideout.com
Enter Promocode “youtube” to get a bonus and free training
Duration : 1:0:17
[youtube eZgAmiObQTc]
Categories: Money Management #hangoutsonair, best forex course, best forex teacher, best forex trader, best trader, forex, forex 101, how to trade, how to trade forex, learn forex, Learning (Quotation Subject), learning forex, learning to trade, Market, Money Management (Periodical), Rule Of 72, Tpsl, Trade (Organization Sector), trading, trading 101
I get it, thanks!
I get it, thanks!
Excellent question, …
Excellent question, the answer is very simple actually..
you shouldn’t have to concern yourself with “equal sizing” at all here are the 2 main reasons:
1. You should always work based on on percentages (rule of 72) as oppose to working value (dollars) based. This is from the “Do and do not rules video”. If you look at the value as oppose to the percentage your mind will trap you with “not enough gain”.
2. As you normally trade with “similar” trade sizes, things will average out over time
I have a question …
I have a question Mr. Metheral. Say I use 4:1 TP/SL ratio. But for this to work, I will need to make sure that every trade has equal amount of money( say $400/$100) as the TP and SL right? But as you know, this is not good as every pair has different volatility and some might take a few hours while other may take weeks to reach the target! So should a trader stick with a constant TP/SL money ratio or a just constant TP/SL ratio? How can a trader avoid the problems mentioned before?