Forex management is very important because you can not avoid complete bankruptcy without it. Use the right forex management and you have the chance to succeed and earn very big money.
The traders easily earn big cash because this is the largest financial market in the world. It has daily turnover of $3-4 trillion approximately. If the liquidity is important for you this market is good for you. It means you can trade any currencies you want at any time you want. It is possible because there is a lot of market which close at different hours. So the forex market is open for 24 hours at weekdays. At weekend you can rest.
First you need to understand if you loose any percent of your money, you have to win more percent to break even or even more if you want to generate some profit. For example you lost 10% of your capital. Your capital was 100$ at the beginning. $100 - 10% losing = $90 stay on your account. If you win 10% after that, you have just $99 on your account. This is less then your starting money with 1%. If you want to reach the $100 again, you have to gain 11.11% winnings with $90 money.
Another thing you have to know before trading is the forex market unpredictable in respect to if the next trade will be winning or losing. Put case a trader has a 80% returns historically. He decides to make a bigger money and begins trading more heavily. But he does not care about the fact he may be experiencing the 20% losses before winning and it is possible he loses all his money unless using the proper forex management.
The examples above make obvious that everybody who trading in forex market needs a proper forex management. Additionally you need to have a forex portfolio.
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