+ Reply to Thread
Page 390 of 390 FirstFirst ... 290 340 380 388 389 390
Results 3,891 to 3,891 of 3891

Thread: Risk Management in Forex Trading.

  1. #1
    Member asiaforexmentor is a jewel in the rough asiaforexmentor is a jewel in the rough asiaforexmentor is a jewel in the rough asiaforexmentor is a jewel in the rough asiaforexmentor's Avatar
    Join Date
    May 2011
    Posts
    23
    Thanks
    0
    Thanked 310 Times in 33 Posts
    SubscribeSubscribe
    subscribed 0

    Risk Management in Forex Trading.

    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 dont extend it while you are winning trades.
    I have seen traders extending their stops in hope that the market will come back and they wont 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 dont 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

    Though trading on financial markets involves high risk, it can still generate extra income in case you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


  2. The Following 22 Users Say Thank You to asiaforexmentor For This Useful Post:

    abokhaledelmasry (2017-11-15), afzalali (2018-04-17), amnajamil01 (2018-03-18), Aonkhan532 (2019-05-20), asad43005 (2013-02-22), asd567 (2019-01-25), danish555 (2017-09-30), hammer13 (2012-08-22), HP2018 (2019-01-14), ij999 (2019-05-25), khan Muhammad (2016-10-19), kkkk (2019-05-25), mandeeprana (2012-04-01), msnali (2015-02-10), ntn (2018-11-22), sagar arain (2018-03-10), sofeenevu (2012-10-18), sunil1978 (2012-11-24), tamansari (2013-09-07), vietnam (2012-06-30), zhyada (2012-03-27), zohaib1 (2019-12-30)

+ Reply to Thread
Page 390 of 390 FirstFirst ... 290 340 380 388 389 390

Subscribe to this Thread (11)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Currently Active UsersCurrently Active Users

There are currently users online. members and guests

Forex Forum India | Forex Community Place Statistics Forex Forum India Statistics

Most users ever online was .

Welcome to our newest member,

Threads:

Posts:

Member: