Effective forex money management involves several key elements: -Risk Management: Setting proper position size and limiting risk on each trade. -Diversification: Spread risk across multiple currency pairs and assets. -Patience: Avoid over-trading and allow your profits to run. -Discipline: Stick to your trading plan and don't let emotions drive your decisions. -Record Keeping: Keep track of your trades to learn from your successes and failures. By following these principles, you can increase the likelihood of success in forex trading and minimize the risk of losses.