Fibonacci Tips 5# Golden Ratio Money Management

Golden Ratio Fibonacci Level

Hello Trader,

This topic is a bit boring when few traders love to ignore the rules of money management.

the money management is simple but it can affects your account.

is it Grow or Destroy?

Im sure that when talking about risk to reward. Traders know about the ratio

1 risk : 2 reward
1 risk : 3 reward

These are the most effective money management strategy. Because your profits

can cover your loss.

It is easy to calculate if you set your maximum stop loss is 50pips, then the rewards would be 100pips.

But how if your stop loss is 35pips, or 21pips?im not saying that the ratio is not good.

it is good.

But You can also use the fibonacci golden ratio by using the fibonacci retracement indicator.

Your reward would also be greater than your stop loss.Your stop loss, your entry and your target profits can be determined easily with using the fibonacci level.

Make sure that you put the stop loss and the target profits in the right way. For instance:

161.8 Target Profit 2
100.0 Target Profit 1

50.0 Enrty 1
38.2 Entry 2
23.6 Entry 3

0.0 Stop loss

If you dont have idea on how to trade with the fibonacci level. You can try to have a look on this fibonacci indicator.

It gives you 3 options on profits target that can match your personal profits goals and trading style.

Good Luck! Happy Trading.

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