The Power Of Money Management

Salam guys..

Its been long time already since i didn't update my blog..quite busy,modem broke out,sim card cannot read,,ayoyo...a lot of excuse ehh...hehe:-p

Now I feel fresh to start trade again and a lot of news and changes i think..
By the way,im still use the same system that i have been using before and maybe just change a little bit..Why?because i already prove that the winning ratio is much better and quite profitable..

For all trader whose still look for a perfect system,let me share with u guys,..
There is no perfect sytem in this world..Even the very good system produce 60% profit and friend of mine is consider among very successfull trader produce around 50% profit a month..

Ok,lets go through..
This is vey simple Money Management that most trader overlook..

Start with 1000usd in your account. . .

Capital : 1000 usd
Percentage of risk per trade : 3%
Lot per trade : 0.1 (depend on broker. . 1pips = 1usd)
Amount risk per trade : 30 usd
SL : 30 pips TP : 40 pips
Percentage of Winning ratio : 60%
So,
Every profit u cash in : 40usd
Every loss u cash out : 30usd . . . Get it??

Let say u trade from tuesday to thursday(monday n friday no trade due to opening and close day of market-no stress eh:), . , .total 12 trades a month right?. .
With 60% percentage of winning ratio, u should make 7 profit and 5 loss a month . .

Profit : 40(usd per trade) x 7 = 280
Loss : 30(usd per trade) x 5 = 150
Net Profit = 130usd

130usd is 13% out of 1000usd..and u could consider profitable trader if u could mantain it every month..Its not too hard is it?But u should be discipline and always follow ur money management rules..And dont forget 13% should blow up ur account if u apply the power of compound interest..find urself..hehe..

Thats all for today,.

Salam Pips :-)