Risk Management in Forex Trading.

[malik]

Risk Management in Forex Trading

Risk Management in Forex Trading is a term that is very important in trading world and at the same time is a major point which mostly gets out of focus when traders start real time trading. The first and foremost difference in trading a demo and a real account is the human psychology. The point is here that how to overcome this problem?
The best way to go is to practice hard and I strongly recommend to practice for at least 3 months as this time period will cover up learning the different time frames as well during that time; a trader can experience all effects of fundamental news and attributes.
Devise and test a risk management strategy over that period without changing it, no matter it is not providing any profits, just keep using it and analyze your strategy after 3 months of so that you can average out all the good and bad runs you had during that time.
Now coming to other part, i.e., devising a good risk management strategy. Originally the market used to not be for the small traders as brokers only allow standard lots or micro lots. Therefore if you are trading a small account, you are risking too much for a trade. In the recent years, there are introduction of new brokers that allows you to trade even 1 unit. This way, you can still apply the same proper risk management strategy or else your account will be blown before you know it.
To devise a risk management plan, first of all figure out what is the risk percentage per trade? For example, how much percentage of the account can be lost in the worst case of a trade?
Usually good traders make 1-2% as a mark to risk per trade. Next you have to set a percentage % of how much can you lose in your forex account (your maximum drawdown). For example, if you lose 30% � 50% of your account using a system. You should stop trading altogether and reflect back on your system. Find out why is it not working and where to tweak it to improve your future trades.
Once the maximum drawdown and the risk percentage per trade is defined, Always keep your stop fix and don�t extend it while you are winning trades.
I have seen traders extending their stops in hope that the market will come back and they won�t have to face loss in that trade. Believe me, often I have seen traders getting them into this situation and loosing out all account. There will also be times when you will be just stopped out and market will reverse, even in those cases don�t get disappointed and keep following the same strategy.
Therefore, even before any one starts trading, one has to devise a proper risk management. With a proper risk management system and combined with a good trading system, you are on the right track to success in forex trading.

Bohot hi achay tips hain bhai aap kay risk MM kay barray main, mujhy to bohot kuch seekhny ko mila aap ki is post say , main issi liye kehta hoon kay forum hi best place hay learn karny kay liye.

[jatayufx]

Forex is so much risky online business where we can earn so much money. Forex is a fast growing business where we can earn so much money but we have be secure and we have to be too much be careful.

Modal analysis and calculation of the daily movement calculated correctly, so he makes an analysis of daily trading with those who profit and reduce errors in the loss and capital management, and one of risk management system trade

[Rooney]

In the Forex trading the risk is highly involved we can remove it if we avoid from the mistakes during the Forex trade. We can overcome on the risk through getting the experience and practice on Demo Account first and gain the experience then start in real account.

Forex is so much risky online business where we can earn so much money. Forex is a fast growing business where we can earn so much money but we have be secure and we have to be too much be careful.

[shahid1]

In the Forex trading the risk is highly involved we can remove it if we avoid from the mistakes during the Forex trade. We can overcome on the risk through getting the experience and practice on Demo Account first and gain the experience then start in real account.

[ishvara]

forex is very risky that it can not be described and you may lose huge money for it.There are some traders who lost their huge money or may be all in forex for doing gambling.But you can avoid risk of forex and overcome it also to learn forex properly.

Yes forex currency trading business is actually a business that has to do with risks. This is to say that a forex exchange trader should actually needing to learn how to control their risks as they trade forex.

[boeled]

risk management is one of the things we have learned so we do not lose what we have trading accounts too rapidly. risk management teaches us to pay attention to how much risk should we use when trading.

[proj.akun]

I think risk management very relative from the person to other person, because this all about the risk of the money, for example, if I entry in market, when I position wrong, maybe I will wait the price back to my position and profit, but if not, I will stop loss with 30 pips and taking profit with 30 pips

[Rooney]

I think risk management is trading is very essential we must have that and i am also trying to improve good discipline and money management in my trades and in order to sustain we must learn everything . Thanks

forex is very risky that it can not be described and you may lose huge money for it.There are some traders who lost their huge money or may be all in forex for doing gambling.But you can avoid risk of forex and overcome it also to learn forex properly.

[kang portal]

i called it money management
we have to make plan how much lot, how much SL and how much TP
thats a part of risk management
so this is the most important thing to learn before we trade on real account
good money management plan it is mean good income for you
good luck

[Money hunter]

I think risk management is trading is very essential we must have that and i am also trying to improve good discipline and money management in my trades and in order to sustain we must learn everything . Thanks