Risk Management in Forex Trading.

[MarginCall]

In forex trading there is a big risk.risk should be managed first. Without managing risk investment can not be done.if risk is not managed investment can not be saved. So first important thing is risk management then trading.

Risk is in this forex business and the risk of losing our money is high. Thats why we need to have risk management. We should calculate the risk in every in every trade before opening it. Stop loss should be applied.

[budado]

In forex trading there is a big risk.risk should be managed first. Without managing risk investment can not be done.if risk is not managed investment can not be saved. So first important thing is risk management then trading.

That's true. know your risk and you will going to make profit in forex trading. Sometimes many newbies fear risk. In forex once you fear risk you end up losing every thing because you don't take risk. If you don't take risk you will never going to to make profit. Its like trying to kiss a girl if you are not afraid to get rejected then I'm sure one way or another you can kiss a girl. But if you are afraid to get rejected you will never going to kiss a girl.

[waleedkhan]

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.
Ezekiel Chew
Asia #1 Forex Mentor from www.asiaforexmentor.com

kafi achi thread di hai bhai na aur is may kafi achi knowledge di wi hai risk manage ment kay bara may yah kafi achi baat hai may agree karta hun app ki baat say bilkul

[md satu]

its true thanks to make this thread because with this is can remembering me to trading with good conditions
i agree that it pays if you stick to sour strategies

[MarginCall]

We knew all about the risk associated in forex market but yet we keep on playing with risk all the time every time we use higher lot size to trade or use double lots. It is trading with extra carefulness in mind that we will be able to avoid the risk in our trading.

if we are good at using risk management, the level of risk we will tend to decrease. There are several ways that we can use to minimize losses, such as using SL, trailing, Stop, Hedge, Cut & swich, etc..

[budado]

The right expectation can make you avoid the loss and gain the profit.I put my trade with a thousand pips movement allowance when the market goes against me.The forex market is too big to be countered.We can use Demo account to perfect the relevant strategies.You can lower that risk by creating a good plan trading.We can make our trading experiance more profitable.

What do you mean right expectation? I don't think its right to make right expectation in forex trading. You don't expect anything in forex trading. You must make sure of each trade or position you open must have some support from indicators. That's how you trade in forex. Trade with formality. Trade with strategy. Because in the long run if you just going to expect anything that you do is right then you are wrong. Simple as that.

[Maham Gill]

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.
Ezekiel Chew
Asia #1 Forex Mentor from www.asiaforexmentor.com

very good boss ap na to trading ke jana eh lakah de or es ka sath sath ap na hamara jasa newbie ko to jaasa boht sara trading ka bara main jan kari da dey ha ap tub tak ak acha or best trader kabi be nahi ban sakta ho jub tak ap apnaa account ka balance ko management nahi kar skata hoo,

[+8801711444442]

risk management @ forex is really risky.so dont denai risk management.risk management also name of money management.i have been forex trading since last year.i respect my money and money management.

[forexstudentforever1]

You are absolutely right. I have faced this type of situations a lot of time and I was having the same mentality that you've described. And, after that I have lost my two real account. One of that having 1600+ and another one was above 1345. And, I was scalping a lot with huge risks which I wan't supposed to do. Still I feel guilty for that but I have changed my risk management+trading strategy+and I learned Price Action.

[Nabi Ahmed Gill]

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.
Ezekiel Chew
Asia #1 Forex Mentor from www.asiaforexmentor.com

wasa to bahi ap na boht he achi or most best post ke ha maaja es ka boht faida maila ha main zadia tar expert ke ke hoe post ko bar bar esi laya parta hon ta ka trading ka bara main mauaja samaj a jaya yahan tak raha question risk manegement ka to asi ko be bat nahi ha trader kuch loss na kara us ko kabi be loss nahi ho ga.