Don’t waste your time – keep track of how NFP affects the US dollar!

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Join the Facebook community of FBS!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Email tooltip

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

FBS Mobile Personal Area

FREE

View
2020-08-31 • Updated

How To Survive And Profit On Forex: Budget Management Tips

head.jpg

Information is not investment advice.

A lack of money management skills can cost you everything you have on your trading account – even if you are good in everything else. What can you do to enter, stay, and trade on the market through money management? Read on and see.

Sadly enough, good personal finance management skill is usually a habit. If you were unlucky to miss this valuable financial life lesson in your younger years, you’re probably struggling with overspending and the lack of savings. Clearly, it is quite a problem for a trader or investor. The good news is it’s never too late to build this habit.

We analyzed the most popular money management strategies and picked the most valid tips for those who want to maximize their investment effort. For your comfort, we split them into 2 categories: survival tips and earning tips. The point is Forex newcomer strategy is based on survival: you need to stay safe and afloat at first, and profit comes later. Here’s how it works.

SURVIVE

Mind the risks. Always.

pic1.jpg

This is a #1 tip for anyone who is getting started on Forex. Long story short, you must know how much money you’re ready to risk on a single trade. Normally, the upper limit of your risk per trade should be 2% of your trading account. It’s a good idea to use a trading calculator to see how profitable a particular trade can be. Risk management is crucial if you don’t want to end up making a series of losing orders and wasting your entire balance.

It’s a good idea to use stop-losses for each and every trade you open. It will safeguard your investments from unpredictable market moves: just set your stop-loss order not to exceed more than 2% of your trading balance, and you will stay on budget regardless of the stormy market. You can try equity stop, volatility stop, chart stop (technical analysis) or margin stop depending on what you need to balance.

Deal with your emotions

pic2.jpg

Traders hear that a lot: don’t let your emotions take control over you, because this is what pull most newcomers away from the market before they even make their first profits. Stress, tilt and greed will be your worst enemies, so make sure you learn how to handle them. Moving stop-losses when a trade is already open, exiting early, or going too far with leverage are typical signs of an emotionally unstable trader.

PROFIT

Use leverage… discreetly

pic3.jpg

Leverage is an ultimate profit booster, but it should be treated with caution. Along with the potential of magnifying your profit, it brings along increased risks. Using high leverage is probably not the best idea for a newbie, but once you become more confident, it can induce fabulous profits that you’ve been imagining when entering the Forex market. Take your time to determine your position size and leverage based on the stop-loss in pips in order to avoid significant losses.

Place appropriate take-profit levels

pic4.jpg

On Forex, your reaction speed can mean the difference between success and failure. Particularly, you should know where to close your position in advance once it gets profitable – this is what take-profit levels are all about.

Bottom line

Let's face it: managing your money flow is sometimes harder than actually making money. Meanwhile, the decent operation of your funds may include higher earnings over time. Have no fear – we all make financial mistakes that leave us wondering where all the money went. Just make sure you take the right steps to survive your first months, learn the mechanisms and play with the strategies.

  • 90

Be on top of your game

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later