Why money management is the most important element in trading

The traders have the tendency to focus on trade entry strategies and trade exit strategies immensely but they do not understand that their main focus should be in money management. The money management is the crucial factor of trading.  Unfortunately, traders do not give enough attention to the money management strategies. It is very important that you make the decent amount of money via profitable orders otherwise; you will not be able to become successful in the Forex market. Fortunately, money management is not hard to study; the simple fact is you should know how much money you risk in a trade. Even if you have the predetermined stop loss, you will be risking an amount for a pip, so there the money management role is being played. To be more specific, it is just about how much you risk in a trade.

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