Money Management - The Most Important in Trading

Money Management

There are tons of information on strategies , holy grail systems on Forex trading, but very seldom do we hear that the key to success is how well you manage your risk to reward per trade.  

Recently a good trading friend of mine , Ron (Pivot Panther) whom I knew from Dale Pinkert's Live Analysis Room gave an excellent presentation.  

Pivot Panther's Presentation about Money Management

EURAUD forecast for the week 20th January, 2014

EURAUD forecast for the week 20th January, 2014

Daily Chart

• Although the upside seems limited, we are finding support around the monthly pivot 
• If we manage to break above last months highs, our next resistance for counter trend trade is shown on the chart
• RSI indicators is around 60 suggesting further uptrend is likely

Hourly Chart

• We are trading above weekly pivot , and if market retrace back there which also is a 61.8% fib / or a 38.2% retrace of recent swing , it provides good confluence level to take a long
• Stochastic are in the oversold zone
• RSI is neutral

Outlook Trade opportunity

As H4 chart suggests, a potential long trade.

**UPDATED** - Order filled - please see this link

Risk Level LOW

Tips -

Always take note of any economical news event on our provided calender below