Forex Money management tips to protect your portfolio

The management of money is one of the investment strategies most important to those who will start as operators of the currency market.

We can say that it is a key element to ensure that the chances of survival in the markets are maximum and thus have the possibility of prevailing in the long term.

What is sought with good money management is to prevent a judgment error or a particularly violent adverse movement in the market from leaving the operator out of the game? That is, we must be prepared to avoid the costly mistakes that most new investors make, which could lead us to the point of losing our investment only in the first operations.

We must be very clear that in this market, not everything is profit, but there are also losses, and both cases must be well controlled through detailed reports of the activity of our account, which will allow us to see if the strategy is working as we expected.

To put it another way, when we talk about money management, it is, like talking about intelligence, the engineering to carry the game forward, since, without proper logistics, no game can be won.

Another very important thing to carry out this strategy is to have a good system, since, in this way the operator will be able to earn more times than he is wrong, good money management will allow him to accumulate profits regularly and safely, avoiding that a particularly violent adverse market movement may put you out of the game.

Forex Buys And Sells Signals

The signals for buying and selling are seen using graphics, just like the LCG broker review (รีวิว โบรกเกอร์ LCG which is the term in Thai) one of the most used tools in the forex market. It is simply a question of buying and/or selling pairs with stop loss.

sell signal is triggered when the market generates a closing bar below the trend line. In this way, the most aggressive traders seek to sell as soon as prices cross the line instead of waiting for it to close below the line.

For its part, the buy signal is activated when the market generates a bar that closes above the trend line. As in the previous case, the aggressive trader can see what to buy at the first penetration on the upside that prices do.