Welcome to part five of this mini-series on currency investing, and quite possibly the most important one of them all, risk management is also known as money management.
Quite simply, money management in currency investing describes the various aspects of managing the amount of money you risk and the return on investment you make.
If you don’t fully understand the implications of money management as well as how to implement money management techniques, you should not be investing, period.
The most important aspects of money management are:
Time stamps as follows:
0:00 to 0:42 Introduction.
0:43 to 1:24 Quick review of the mini-series part one to part four.
1:25 to 1:57 What is money management in currency investing.
1:58 to 2:19 Technical jargon on the meaning of a pip.
2:20 to 2:58 The fixed percentage per pip strategy.
2:59 to 3:39 The fixed amount per pip strategy.
3:40 to 5:30 Risk to reward strategy.
5:31 to 6:05 Next week’s topic strategy and methodology.
6:05 to 6:43 Examples of wealth-creating endeavours which carry risk.
6:44 to 7:36 Wrap up.
Hope you have a wonderful day,
The FYR team.