Risk management plan of forex trading

[kasual]

I am not use stop loss order and choose to use cut loss because its my strategy. its better option for me since I trade based on general pattern of price movement, and not deal with volatility. when I see the market have confirmation to move against my position, I will close position right away. but when my position in floating loss but the market still shows that they are support my order, I keep let these position open.

 

[budado]

Risk management in my part is very simple. I do hope I can earn more money in forex hoping that some day I can say I'm earning good and earning well in forex without any problem at all. I'm excited right now to see myself becoming a successful forex trader.

 

[riddick09]

We can have more profits and money when we have managed well the risks in our trades. This will mean that if we have lessen the losses we are actually increasing the chance of making profits. Thus, it's important that we know and have applied our risk management in every trading.

 

[kasual]

the important part in trading is manage the risk by apply proper risk management plan. because market nature is unpredictable. there will be always loss possibility and if trader trade use high margin per order, they will suffering huge loss once they are make wrong order.

 

[riddick09]

That the market will always have changes of movements that it's also very volatile that we can't specifically know the exact pips it will take and that our analysis can fail when the sudden changes occurred and at the same sudden spikes happened. So, the risks should be applied like the stop loss and take profit placed.

 

[kasual]

trader have own strategy to manage the risk and how much loss they can bear. sometimes trader apply risk and reward ratio, money management, placing stop loss order and all of them is part to minimize the loss. we need it because something unexpected can be happen in market.

 

[riddick09]

The risk management is part of the strategy thus, we should be careful on what management we will use as the purpose of it is to not have huge losses or prevent losses. We should have tried it as well during our practice in demo to have apply it with our strategy and seek for the best plan for it.

 

[budado]

Its good if we know how to trade. I'm sure in the long run we can say we can earn good amount of money in here. Right now I'm happy that some how I do make something good out of myself in here. I'm hoping that in the long run we can say we can really make something good with ourselves in here.

 

[kasual]

before we set risk management plan, we need to know ability of our trading strategy. if our trading strategy not too good and still generate high loss, probably important if we are set tight risk management plan. but if we are confident that our strategy able to generate more than 70% per month, we can a little bit aggressive in trading.

 

[indieover]

Yeah of course we need to review on how effective is our trading style. If it's not giving effective and successful results then there should be changes or some improvements on the trading styles we have. There's some practice and learning that we have to do so that we would be able to have successful trading most of the time

 

[budado]

Risk management is the best way we can make good income in here. I really do hope I can maintain and sustain my account for good in here. I really don't like to see myself earning big amount of money in forex but I canonly do this if I'm going to make some good profit in forex. That's why risk management for me is the best way to sustain and maintain my account.

 

[indieover]

we have gained more knowledge then we get better in risk management. that's why it is very much important that we have more experience that you would be able to have better risk management.

 

[riddick09]

I think that it will still depends on how we have applied it aside from our knowledge in the risk management we should have done the tests and evaluation of our risk management to ensure that this will truly work for our trading. And of course, this will be not just few times to try but to perfect our risks to have lowest possible risks or losses.

 

[jackcm]

I determined risk by determining risk/reward ratio. I often prefer 1:2 while 1:1 is the least and above 1:2 is the best. Of course risk reward ratio isn't enough, it is also about pips which I am willing to lose. Because I am intra-day trader, my stop-loss pips is usually under 100.

 

[rexway]

In this business there are alot of risk that is associated with it so we really need to try our possible best and ensure that we trade with small lots and stoploss which can help prevent us from loss which may happen here in the trade market

 

[riddick09]

Yes, there is always risks in Forex trading and therefore, we should be aware of the risks to have lessen and lower it as much as possible in order to become profitable and not going to have huge losses in the trades. Because, a good trader knows how to survive and trade for longevity of the account.

 

[naninov]

i use stop loss to control my risk now, i ever did using hedging system when i trade on exness but i didn't know that their spreads widen when some news release the bad thing happens, my balance unable to cover fees of the spreads because of spreads widen about 50 to 80 pips, i lost all my balance because of that

 

[winuga]

Cut loss is used to limit the losses so trader will not get greater losses. This method is usually used when prices are moving against what is expected. At that time, the trader must be smart at determining how many points he has to cut loss according to its ability to accept losses. Cut loss is a more prudent way than constantly bear the loss and eventually suffered a margin call

well i don't think that Cut loss is a more prudent way than constantly bear the loss and eventually suffered a margin call, cut loss used with main purpose not to get more losses from current market situation and absolutely stay away from margin call because using it means that traders already calculate the risk and ready for the next trade

 

[batigor]

yes, cut loss maybe the better strategy rather than others because it can reducing more losses that mostly come from market volatility while traders can re analize market from that current trend and than open again some positions after doing some analyze to cover loss and gain profit at the end

 

[Decub]

Well, this was one of the first thing I was thought even before laying my hand on any book. It comes with the popular Forex term of "do not invest that which you cannot lose". In the actual sense, I have set out the extent at which I see as my own loss bearing point in every 24 hours and each time I hit that point, I close the trade for the day.