Whats your Risk percentage per trade?

[sidhu]

i am using multi money management but i will tell you about that i am interesting for it in this time in this example if you have simple strategy give you 50% success and this is generally random strategy you make 1:1 ratio stop loss and take profit this mean you will get 50% prospect for each of them and you will get 50% amount to loss and win, if you change the lot size to double after you loss for 3 level you will get good result.

[sidhu]

i think that 3% of capital is big risk on your capital at long time trader can lose all capital slowly , trader must have no fixed risk on the management mean change the lot size by changing the ballance.

[moti]

To have confidence in you, you must learn how to manage your risk management, and try before you enter a transaction to use a very small lot to confirm your entry, but you must first create a plan to do all those steps .. after you will avoid all risks and you will earn a good profit.

[Morshedul]

I do not know the risk percentage per trade because i do not know how to calculate this. I think if i can calculate this, then the chances of my risks will be lowered than ever. Now i have suffered huge losses sometime which does not show good results in forex. I want to reduce the chance of getting loss. Please tell me if you know it.

[fxquest]

Though it look worthy to use lower risk then reward but some time due to lower capital it is a waste of time to spend very little part of capital on a trade and at such time i think we should not stick to the hard and fast rule of using a fixed percentage of risk, though if having enough capital using lower risk will be wise.

[tajdarbet]

Forex Risk Management � Whats your Risk % per trade?

Forex Risk Management
FOREX RISK MANAGEMENT

Whats your risk % per trade?
Or should i say, what�s your risk appetite?
To be a successful forex trader. You will need to have a proper money management system.
It starts with identifying what level of risk % per trade will you risk.
As a guide, a safe and good risk percentage will be from 1% � 3%.
Anything higher than 3% will be relatively risky.
Why is this so.
If you understand, the forex market can do anything.
Even if you are sure this is the MOST perfect setup.
It MAY NOT end up the way you expected it to be.
Why?
Forex Risk Management � Whats your Risk % per trade?

Forex Risk Management
First, you must understand that anything can happen in the forex market.
Just for example, even if it is the most perfect setup. If a major institution pumps in a large sum of money at that period of time. It can change the direction of the market for a short time frame.
And when the retail investors see the market moving in the direction stipulated by the major institution, they will then follow suit and enter the same way.
WHICH causes the movements in the market.
But of course, this doesn�t happen always.
What i�m saying is, anything can happen in the forex market.
So even if you are the best forex trader in the world. You will not have a 100% winning rate as well.
You will still lose as the market can do anything.
Which is why, it is not wise to have a high risk per trade.
Forex Risk Management � For example, if a trader risk 10% per trade.
And a series of unfortunate events happen to him, (maybe it�s a distraction, maybe there�s an earthquake etc)
As a result, he made a series of 5 losing trades.
He would have wipe of 50% +- of his trading capital because he risked 10% per trade.
And with just 50% left, it will be hard for him to make back his loss.
So if you see what i meant.
Forex Risk Management � For example, if you risk 2% per trade.
With a series of 5 losing trades. You would only lose 10%+- of your capital.
Which is not to bad.
With a good trading system, we can easily make back the money loss.
Forex Risk Management � Whats your Risk % per trade?

Forex Risk Management
But here comes the big question.
What is your risk appetite?
You see, there is absolutely no point into asking you to risk 1% per trade.
Forex Risk Management � Eg. Capital $5000
Risk of 1% = $50 per trade.
If at the back of your mind, you do feel that $50 per trade is too little.
Then you will most likely find and trade even more trades that you usually should � in order to make more money. Right?
Therefore, the correct way to set your risk % per trade varies with different individuals.
You must ask yourself.
Forex Risk Management � Eg. Will you be satisfied with
$50 per trade or
$100 per trade or
$150 per trade
based on the capital of $5000
Once you got an answer, you got your risk percentage.
Forex Risk Management � Whats your Risk % per trade?

Forex Risk Management
Remember,
1) Your risk percentage cannot be too high. As mention a good gauge is 1% � 3%.
2) Your risk percentage must meet your risk appetite. There is no point in risking 1% if you find the amount too little and does not satisfy your hunger.
So there you go.
Once you have set and decided on your risk % per trade.
STICK FIRMLY TO IT!
For example, in a series of trades. You cannot have eg. 1% on 5 trades, then 3% on 5 trades etc.
Because if you play it this way, and what if you make money on the 5 trades with 1% risked, and lose money on the 5 trades with 3% risked. (which usually happens!)
YOU WILL LOSE MONEY!
Therefore, stick firmly to the risk percentage per trade which you have set.
Eg. If you set 2% risk per trade.
From now on, every trade you take � You will risk 2% per trade.
NOTHING MORE, NOTHING LESS.
This way, you will be consistent and you are on the right track to success.
This is part 1 of the 2 series of Forex Risk Management.
Stay tuned for the 2nd part.
Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies | system that i personally use to be consistently profitable.
See you on the other side my friend,
Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com:)))

thank you my dear jo app ne itni achi post ham se share ki ha main khud es main kafi intrested houn kioun k mugh ko ab forex trading k hidden pata chal rahey hane es liye main es ko pori koshish kar raha houn seekhney ki

[Tozammel]

Risk management is very very important in forex trading because this is a risky business. The profit or loss will be higher if the risk is high. On the other hand profit or loss will be lower if risk is lower. The risk will be within 0% to 5% or maximum 10%. Even larger banks take risk up to 5%. So it is best to minimize the risk.

[sumonmia0526]

with minimal risk of 2-5% as it is written you., about how much profit you get. whether each month,. ,, It looks like it's also good management.,,,

this is not good at all to take 2-5% risk just for one trade ..the best part of risking should be 1% for one trade .but when someone having huge equity they will risk more and more coz they having the back up money so they can recover any kind of loss in any time

[sumonmia0526]

the risk are taken and decide upon equity ..suppose some times i m taking risk of 20% and most of the time i m taking 5% risk for just one trade ..but professional trade never do this ..the maximum risk may be per trade 1-2% .i m small investor so i m not following hte money management all time ..may be this is the only reason i m losing most of the time

[anubhavsingh]

depending on how you dare to sacrifice your money. there are traders who make use of full lots in trading. some are only 10%. each trader has an individual individual trading style. but its not safe to the point of trading using a capacity greater than the ability of your trading capital.

trader ke paas jitnmi zada equity hoti hai wo utna zada risk le sakta hai kyunki uske paas back up ke liye kafi acha paisa hota hai
chote traders ko market me bahut soch smajh ke trading karni chahaiye kyunki unke margin call lagne ke chances bahut hi zada hote ai jabki bade traders ko margin call bahut hi kam lagti hai