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Risk management plan of forex trading

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.

Yes that is a common sense risk management which all people should know without being told, often some lose are incurred due to people actually invest what they can not afford lossong so the panic and presssure gets higher while trading. Which eventually leads to trading with confusions and emotions instead of logical.
 
i use stop loss for my management risk trading system because i already fail to comply with other system like hedging... i remember i ever lost because of spread widen using hedging system which wiped out my whole balance in exness, if i used broker with fixed spread i must earn good profit using hedging system that time, bad experience ever
 
Risk management will help you in trading as well. When you can lower your risk, you can earn more. Forex is very risky so you have to enter it with full knowledge on how to protect yourself. You can lose all of your money in a matter of a few minutes so make sure you know how to trade and know how to set all of your numbers right like stop loss or take profit or trail stop. Also, you should use low capital and low leverage to prevent losing a lot of money.
 
Learning and planning risk management is very much necessary at forex trading. There are many aspects which should be learned. It helps traders to minimize their loss.
 
Risk management is very important in forex trading as it is very risky. we should always try to lower down our risk as we can't be free from risk wholly but yes we can definitely try to minimize it.
 
Risk management is very good and at the same time its save the trader trade and make the trader trade with confident and power since he will be dong more good trade and secured trade than he ever imagine so forex need to be traded with good money management
 
Yes that is a common sense risk management which all people should know without being told, often some lose are incurred due to people actually invest what they can not afford lossong so the panic and presssure gets higher while trading. Which eventually leads to trading with confusions and emotions instead of logical.
And those are the ones that lead to some health related problems. Some are always attracted by the profit they will make by investing with a higher profit. They tend to imagine how profitable the outcome will be when their plans slip off, it becomes a problem.
 
Stop loss is required so we don't empty out our account. Losing 20 pips is better than losing 200 pips so any kind of loss control is essential. One must always keep loss in mind. I think exiting a trade as soon as the price dips is a good one unless you're in it for the long term and have sufficient money to keep it moving. Also, you should take profit if you could to avoid loss when it turn against you. The trend can only go so high and it will not go to the unthinkable so just take profit when you can.
 
And those are the ones that lead to some health related problems. Some are always attracted by the profit they will make by investing with a higher profit. They tend to imagine how profitable the outcome will be when their plans slip off, it becomes a problem.


Well, that the disadvantages of following the crowd, therefore I thing when people have good risk managment then there will be just less people lossing money. But greed is something that prevents that from happening.
 
Stop loss is required so we don't empty out our account. Losing 20 pips is better than losing 200 pips so any kind of loss control is essential. One must always keep loss in mind. I think exiting a trade as soon as the price dips is a good one unless you're in it for the long term and have sufficient money to keep it moving. Also, you should take profit if you could to avoid loss when it turn against you. The trend can only go so high and it will not go to the unthinkable so just take profit when you can.
Yes, stop loss is a very good way for us to manage the capital in our account and prevent it from getting drained off. However, the major problem most times is in knowing where to set this stop loss as it could be confusing at times.
 
Yes I think so risk management is very important when its come to forex trading the traders really get what they want and obtain the best thus protecting their trade as well here in this market forex trading is one of the best way to get extra profit if the knowledge is thete
 
You should manage your losses, risks, and money and your mind in order to be a good trader. In forex, its all about management skills that will set you apart. You can manage your loss by using stop loss and take profit when you can. You can manage money by using low capital and low leverages to prevent large losses and do forum postings for more bonuses as well. Save some of your profit so you will at least have kept some money.
 
Risk management is very important for the trader in the forex trading market to know how to manage it. Trading in forex is a risky business, so therefore, the trader should be able to remember how t use the defense tools like the stop loss tool to reduce risk.
 
risk is everywhere in this business that is why you need to see and observe so many loss here trad er market of forex ,but if you know how to handle the risk and placed good risk management then you must surely get something that is more profitable and possible make more profitable trade
 
I think the best way of managing risk in forex trading is by making sure that first the actually amount of money in which we can afford lossing is that which is been used in trading, then from there we can take care of other things.
 
In forex trading the risk management is the first thing which we need to avoid from here I think atleast setting a good risk management will help secure your trade and keep it in a safer place for you which is actually the best
 
Risk management in Forex is not a theoretical thing. It is something that the trader practices over and again to get the experience. A lot of people will see it as accurate and effective setting of Stop Loss but it rarely comes easy especially for the newbies.
 

Traderpulse

Broker Representative
Risk management is very important for the traders as it enables the traders to minimize the losses and improve their trading skills. Trader should know the proper use the stop loss and take profit.
 
Risk management could be your best friend in forex market if you have profitable strategy and ability to for emotional self discipline. If you are not sure what risk management to apply you can simple choce risk 2 percent per trade, and 5 percent per day, and it would defence you trading account. But If you use some specific strategy, it is better to calculate your risk management in correlation with profitability of that strategy.
 
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