Yes money management is so important in Forex Trading. This simple forex system will make you earn more dollars or pips. More than 1800 PIPS made in 2009 and still rocking in 2010 just you can refer our performance sheets. But we made face some bad cycle in simple forex system i means some loss sequence.
Just to understand we could have a sequence like below:
-30, -30, -30, -30, +30, +30, +30,+30,+30 pips. Result after 9 trading days we + 30 pips, positive! Still in profit.But during these days we have had a temporary regression of -120 pips, which means less dollars in the actual balance. If your account balance is down below broker margin you cant trade the profit signals. So it is necessary to have an efficient money as margin to cover these temporary loss cycle.
Three types of lot size are available in Market
1) Mirco Lot - 1000 Currency Units (GBP vs USD)
2) Mini Lot - 10000 Currency Units (GBP vs USD)
3) Standard Lot- 100000 Currency Units (GBP vs USD)
Fund need these 3 types of lot size
1) Mirco Lot - USD 120
2) Mini Lot - USD 1200
3) Standard Lot- USD 12000
Daily only USD 8 or USD 80 or USD 800 will be only used for trading. Then why this much huge amount nearly 5 times? This remaining funds are kept as margin to tackle bad cycle and must to have margin money to be a successful trade of this system.
Any help mail me at 30pipsforex@gmail.com with subject Simple Forex System