Summary of Money Management and Trading Guidelines

The most important elements of money management and trading are the following

Trade in the direction of the intermediate trend
When there is an uptrend, buy the dips and for the downtrends sell on the bounces
You need to let the profits run and cut your losses short
Use stop losses to limit your losses
You need to have a plan and never trade rashly
Plan your work and work your plan
Always use money management principles
You need to diversify but remember that you don’t overdo it
Employ at least the 3 to 1 reward to risk ratio
When you are adding positions follow
- Each successive layer should be smaller than before
- Add only to winning positions
- Never add to losing positions
- Adjust stop loses to the breakeven point

Xglobal Group

we introduce you to our group of forex companies:

XGLOBAL Africa (Pty) Ltd is south African Financial Firm regulated by the FSCA with FSP 51306

XGLOBAL Markets Ltd is a European investment firm that is authorized and regulated by the Cyprus Securities

XGLOBAL FX Ltd is an international broker regulated by VFSC (Vanuatu Financial Services Commission)

Never receive a stop out; don’t throw good money after a bad trade
Close the losing positions before the winning ones
Work from the long term to the short term
Use intraday charts to fine tune entry or exit points
Master intraday trading before you try it
You need to learn to be comfortable as a part in the minority
Technical analysis is a skill that improves with experience and study. You need to be always a student and keep learning
Keep it simple because more complicated isn’t always better.