No matter how many lots that you trade, the basic rules of order management is simple. You want to lock in your profit and never let a winning trade go negative on you. Our news trades are considered successful once it reaches 15 pips of profit; therefore there is absolutely no reason why after a 15 pips of profit you would still let the trade go negative on you. Always move your stop to breakeven or lock in 1 pip of profit when you are up to 15 pips.
Once you get 20 pips of profit, close 50% of your position guaranteeing you a profit, and leave the stop/loss at either breakeven or 1 pip profit, and let the market ride. 75% of the time you will end up with 1 pip or breakeven, but the other 25% of the time you will end up winning 50, 100, or even 200 pips.
Once you have taken profit on the first 50% of your position and lock in your remaining 50% with profit, you are no longer risking any capital. It will no longer count as part of your leverage. You may take on other trades.
For example, you Bought 1 Lot of EUR/USD and Sold 1 lot of USD/CHF, and you have taken 20 pips profit on both with 0.5 Lots and still have 0.5 Lots USD/CHF and EUR/USD riding the market, you are free to trade 2 more lots since you are not risking anything with your current open trades.
Another important aspect to money management is your daily goals. Set realistic goals by looking at your monthly target. If you have a $25000 account and you would like to make 20% return per month, or $5000, you need to generate about $250 per day. That’s 25 pips of profit on 1 lot. Therefore, if you are trading 1 lot per currency pair, you would stop trading for the day once you have 2 successful trades. Of course if you follow the 50% rule with the order management, you could make more, without taking additional risk.
Your goals will determine your risk factor. If you plan to make 50% return on your account per month, be prepared to lose up to 50% of your account. A realistic number will be anywhere from 5% to 25% of the account. Anything above that is too risky. Trading is a business, and to run a successful business you need capital. If you only have $5000, don’t expect to make $10,000 by the end of the month. Go for something more realistic like $1,000 or even $1,200, but never expect to double or triple your account size.