Risk Management in Forex Trading.

[Tuan Takur]

I agree that it pays if you stick to your strategies and the extending stops in hope that the market will come back is the bit mistake we make often. Either we should use very low leverage and set our stop or leverage according to that or even if we use tight stop we should stick to that.

I always use risk management, I told by my brother if we want to be a professional trader we must prepare all of forex trading need to be a good traders, contains risk mangements, trading strategies and money management too.

[SeoHyun]

firtsly if our to be succes look risk for manage money (MM) because this is very important before your order... look risk reward. if mindset MM have with my hand. maybe consistent profit will get it.

When we talked about risk management, sure we disscuss about money management too, and risk management is a must for all traders, if you have good risk management you will not get margin call and you can survive longer in this bussiness.

[Dages0308]

firtsly if our to be succes look risk for manage money (MM) because this is very important before your order... look risk reward. if mindset MM have with my hand. maybe consistent profit will get it.

[yudijoni]

Manage the risks in trading I think is similar to when we cross a busy road. We can cross with your eyes closed, do not look left look right. And maybe once we get to the other side safely. But at least scolded people what it worthed? In 100X we cross we are saved, we just hit metromini 1x then we can trade Hospital. We can be sloppy with our RR trading time and remain safe and profitable. 1x But enough is enough to wipe out all profit-capital along with capital. Can also hospitalized hehehe.

[vc2204]

for me, the most important thing in forex trading is that we have a good risk management. It is given that forex is a risky business that high. Forex trading without risk management, is like driving a car without using the brakes and seat belts ..

[shepon93]

I agree that it pays if you stick to your strategy and the extend stops in hope that the market will come back is the bit mistake we make often. Either we should use very low influence and set our stop or leverage according to that or even if we use tight stop we should attach to that.

[alvikfc]

Risk management is a very important thing in Forex trading . If anyone manage his risk then he can get a good profit in Forex trade . Risk management minimize loss and profit properly.

[CreolaPitaj]

Many traders practice bad risk management. They suffer catastrophic loss and get wiped out by the market soon. Thus ending their career before it had even begun. You might have the best forex system but with bad risk management practices, it will not work.

Bad risk management is one of the main reason that fails the budding career of many new forex traders. Many people start trading forex dreaming of making a million in just a few months. They overtrade, take on too much risk and get blown out by the market.

Many buy a great forex system, make a few trades that are way too big for their equity in the account. When the first few of these trades go wrong, they lose almost all their equity. After this they think that forex trading is a lie and quit.

What is more important for you? Capital preservation or capital appreciation? Of course capital preservation. Learn to survive the market and trade another day. Suppose, your system makes only 10% return per month with a risk of only 1%. Is it better or is this system better that gives a 50% return per month with a risk of 10%. Naturally the first one is a better system. Let me explain.

[nasim39]

.l m against fixed stop-loose .couse when you have open a position your stop loose is depend on the nearest support.putting a rule such 10 pip or 20 pip rule for all the trades will always fail.

[abayomi kolade]

alright thanks very much for your time taken to give the analysis on the risk management but i think i will also advise newbies to make sure they risk only 3 percent of there account because with 3 percent you can always trade and have your mind at rest and never trade with emotion and by doing this we can be happy being a forex trader