# Give yourself as much chance of survival as possible

A group of antelopes runn rebateforexfeeg in the grassl rebateforex, followed by the athletic cheetah, a life and death contest like watching "Animal World" friends may ForexRapidRebate impressed by th Forex Rapid Rebate scene in the jungle, all life, regardless of size, the first requirement is to survive This also applies to investors involved in foreign exchange cashback forex The most fundamental purpose of money management is to give themselves Therefore, the first task of money management is to control the rebateforexbroker of each transaction If the loss of a single transaction is too large, then there is a danger of being eliminated from the market soon Determining the maximum loss of a single transaction should be considered in conjunction with the maximum total loss and the win rate Assuming that the total loss of the account needs to be controlled within 20%, how should the single loss be determined? If our win rate is 50%, the theoretical probability of 3 consecutive losses is 12.5%, the probability of 6 consecutive losses is 1.56% then according to the maximum of 6 consecutive losses, each time up to 3% of the principal can be lost This time, if we want to ensure that a profit can make up for more than 3 losses, the profit should reach 9% or more If our win rate is a little lower. Assuming 30%, the theoretical probability of 3 consecutive losses is 34.3%, 6 consecutive losses is 11.8%, and 10 consecutive losses is reduced to 2.8%. The daily volatility of a currency is 0.57% and the weekly volatility is 2.31%. In the above table, with a 50% win rate, the allowable single loss is no more than 3% 3% higher than the daily volatility and higher than the weekly volatility, so this loss may be suitable for intra-day trading and trading outside of a week. Therefore, this loss amount may be suitable for intra-day trading, but not necessarily for trading outside of a week. Of course, whether it is suitable or not is only a judgment we make before trading, not necessarily suitable does not mean that it cannot be done. After determining the maximum amount of loss, the next problem is the number of open positions. The aspects related to the number of open positions include: the size of the capital, the maximum amount of loss of a single transaction, the stop loss range, the size of the contract. So, is this the whole point of money management? People who lose money in the investment market do not become rich, and people who can only make small profits in the obvious trend market also can not become rich So, money management should also include the other side, that is, how to enlarge the profit, let the profit run In foreign exchange trading often appear such a situation: once in the opening of a position after the profit, the rush to close the position; and once there is a loss, it has been held, waiting for the market to improve even until the At this time, if you have to reduce the position, most of the time, we prefer to choose to close the single profit rather than cut off the large losses caused by the single This situation is similar to: in the hurdles race, Liu Xiang ran in the forefront, but as a judge you, but abandoned Liu Xiang and left another runner the slowest athlete to a small gain is an important feature of the foreign exchange market, see profit on the go not only Although this time the profit has been pocketed, but as long as still trading, in fact, another risk into the number of risks we take is increasing, but each time just for a small profit this is a tigers mouth picking up sesame seeds move Therefore, we are willing to risk the risk of injury to the tiger, pay the price of risk, it should be in the already guaranteed In the case of safety, that is, already have a profitable situation, with patience and wisdom to win the maximum profit