One of the things that makes the difference between a great Forex broker and a mediocre one is certainly not the number of operations that are unable to close in positive territory. That, too, but not the main option. The difference makes the Money Management, the ability to manage its capital. One might think of the Money Management as something that protects us from any excessive losses when we open transactions that go against the trend of the main trend. And 'this too, but do Money Management also means managing the operations in earnings, or know when it's time to get out of going to reap the maximum benefit possible. 

Money Management is not easy to do and there are no

There are those who say that when we open a transaction, we must never risk losing more than 1% of our capital, so as to be able to have at our disposal a sufficient share capital to recover. In this example, you risk only 1% leads us to be able to lose 20 consecutive operations, and to still have 80% of capital at our disposal.

There are others who suggest that this percentage could rise by up to 2%, so as to give us a chance to return to slightly more positive in the case where the loss is only temporary.

In any case, as we have said, are only hypotheses, not least because none of us knows what is the best Money Management best we can put into practice. Obviously, to be able to apply in practice one must also know and one of the best tools at our disposal to Money Management is the stop loss, we're going to see in the next article.