Understanding the simple rules of Money Management – Part I: The Risk-to-Reward ratio

Expert: Sunil Mangwani, CEO at FibForex123
Moderator: Maud Gilson, Conference Manager

Summary:
A Trading Plan is often the thin line between success and failure in the markets & the ‘Trading Plan’ must incorporate the 3M’s (Money, Mind & method…in that order).

It is “Money Management” which is the most important part of a trading plan…and ironically the most ignored.

If a trader understands only the following 2 rules of money management, it highly increases the probability of success –

1. The Risk-to-Reward ratio.
2. The correct exposure of the trading capital.

In the first part of this series, we will have a look at the Risk-to-Reward ratio, understand the importance of this ratio and learn how to implement it in the “Trading plan”.

Webinar presented by FibForex123 and FXstreet.com

Comments

[Dion]

I'm glad somebody is taking the initiative and pointing out the single most important part of trading, It is often missed by most traders and coincidentally (or not so coincidentally) most traders fail. Nice job Sunil! I appreciate your input and although I do not trade with fibonacci alone, I find your videos very insightful Thanks again Dion