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We can lower our trading risk by trading with lower lotsize or lower risk per trade. We can calculate our lotsize based on our risk management. Example, we risky only 1% per trade, then we can calculate our lotsize and our stop loss point. So we will not risky more than 1% per trade, then we can lower our trading risk
all your points are very very attractive and i feel really contended that if you want to stay long term in this forex market you have to work according to the rules of this business and must understood the inherint risk of this business that is leverage because soem time it can work you and some time it can against you
bhae log hamko marketko bhut jayada hi ache s esamjh ke bhut jayaada hi chota aur na hi bhut jayada hi bda lot lena chhaiye jsis eki hamko bhut jayada hi loss ho sake hamko chota lot len chhaiye jiss eki hamra ac bhut jayada hi time tak fight kar skata hai hamko acha lagta hai
Bhai risk to jitna kam hota hai utna hi acha hota hai bhai, maine yaha par low risk ki trade karna shuru kar diya hai bhai, bade risk ki trade karne se humare ko bhai trading mein ache profits to mil hi nahi sakte hai bhai.Quote:
Originally Posted by fxearner
After facing regular loss, I realized that I am making mistake some where but not able to find it out, then I analyze all my trade and found that only over trade and Greed is the main cause of my all previous losses, then I rectify this mistake and now I am happy with my little but regular earning.
the best method to lower our trading risk is to follow a guide for a long times after you will be have a full look to risks in Forex and how we can to avoid all risks
yes may ap kay advice say agree ho thank you k ap nay ye use full info share kiya hay i think kay bohut say newbies is ko follow kar k apnay risk k chances ko kam kar sakty hay aor jaisa ap nay bataya hay to i think ye sub events har traders ko follow karnay chahey
Volatility in the forex markets can bring ample opportunity to speculate and profit from forex price movements. However, there is always the possibility that your trades could go against you and this could net you a loss.
Losses are common for most forex traders, even for the most experienced, and the key to becoming a successful forex trader is to manage your risk.
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As a forex trader, there are many things that you can do to increase your profit potential and reduce risks:
Understand the risks involved in leveraged forex trading
Make a trading plan and stick to a strategy that works.
Keep up-to-date with market conditions
Use Fundamental and Technical Analysis. See our Market Analysis page for more information
Know when to close a trade and take a loss
Use trading tools such as stop orders to manage risk
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With City Index, you can use Closing Orders to keep your trading risk low and manage your positions when you cannot keep an eye on them. There are two main types of Closing Orders: Stops and Limits.
Stop Loss Order with an existing trade
At City Index, we offer Stop Loss Orders free of charge and across all of our forex trading markets.
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Stop Loss Orders are used to close out an existing trade if the price moves to a level worse than the entry level, in order to help minimise losses. These are one of the most popular tools used by traders to manage risk. When the market reaches a stop level set by you, your trade will be closed automatically, cutting your losses before they can accelerate.
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For example, if you went long EUR/GBP at 0.8850 and wanted to cut your losses should the cross pair trade as low as 0.8790, you would place a Stop Loss Order at 0.8790, representing a drop of 60 pips. This means that you are limiting your risk to just 60 pips should the market go against you.
However, Stop Loss Orders do not provide 100% guaranteed risk protection.
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During times of market volatility, your trade could sometimes be closed out at a level that is different to your stop level. This is due to gapping or slippage, which occurs when market prices literally gap between one price and the next, without ever trading at the levels in between.
If the market gaps through your stop level, the closing price of the trade could differ from the stop level you have set, with the trade being closed out at the best available price after the market gap.
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For example purposes, let's say you have bought GBP10,000 on GBP/USD at 1.6284, and have specified 1.6224 as your stop level, 60 pips below the current price.
Unfortunately some bad retail sales figures in the UK push GBP/USD lower and your position is automatically closed out at 1.6224. Your loss is limited to GBP10,000 x 0.0060 (60pips) = $60.
Please be aware that, in very rare occasions, order slippage may occur. If the market gapped down and traded below your stop level, without having ever traded at your stop level, then your trade would be filled at the next available, tradable price.
leverage is mainthing in forex trading.but nobody care abou it . risk mainly involved in account size,lot etc...
Lower karne ke lie ap ko chehiye hota hai less leverage level kyun ki aghar ap less leverage ke sath trading start karte hai to ap jayeda time tak trading kar skate hai forex market mai woh bi less risk ke sath kyunki less leverage ke sath ap ka risk bi less ho jata eh.
---------- Post added at 01:36 PM ---------- Previous post was at 01:30 PM ----------
Lower karne ke lie ap ko chehiye hota hai less leverage level kyun ki aghar ap less leverage ke sath trading start karte hai to ap jayeda time tak trading kar skate hai forex market mai woh bi less risk ke sath kyunki less leverage ke sath ap ka risk bi less ho jata eh.