employing money management basics

It has long been known that money management is the most critical consideration in trading and investing. Money management includes the prudent use of leverage. Sound rules and disciplines allow success to accumulate while minimizing the risk of ruin. Reserves are funds in our account that are held back from trading, and usually parked safely on the sidelines in risk-less money-market instruments. The effect of holding reserves is to reduce net leverage. A workable rule of thumb that has evolved over time out of the real-world trading arena is to limit net leverage to 30%. You must take your winnings regularly to a deposit account in order to diminish the risk exposure. More about this topic can be learned with our forex manual which is in e-book format and is sent after purchase through Paypal.