• The Forex, Binary Options Forum - welcomes you to our Community!

    DigitalCashPalace Forum is dedicated to discussions about Forex, Binary Options, commodities, stocks related.

    Please take a look around, and feel free to .

important tips in risk management

Money management can be a differentiating factor among the forex traders. A foreign currency exchange trader needs to manage all his funds with a combination of risk management. The reason is: a trader will not be able to achieve his trading goals without considering his trading and financial capacities to bear risks. Thereby it is essential to think about the capacities to bear risks before a trader can start trading with his real money here.
 
Money management can be a differentiating factor among the forex traders. A foreign currency exchange trader needs to manage all his funds with a combination of risk management. The reason is: a trader will not be able to achieve his trading goals without considering his trading and financial capacities to bear risks. Thereby it is essential to think about the capacities to bear risks before a trader can start trading with his real money here.

Of course mate, risk management issue is very much important here! Whatever, may I know your risk reward ratio in a single trade? For me, it’s 2% max.
 
There is no doubt that forex is a risky at the same time a competitive market place where a foreign currency exchange traders should adopt proper risk management tools and techniques to hedge his position against unwanted price fluctuations. But if a trader lacks education and knowledge about financial market tools and techniques and basic of forex trader, he won’t be able to successfully carry out risk management approach also.
 
There is no doubt that forex is a risky at the same time a competitive market place where a foreign currency exchange traders should adopt proper risk management tools and techniques to hedge his position against unwanted price fluctuations. But if a trader lacks education and knowledge about financial market tools and techniques and basic of forex trader, he won’t be able to successfully carry out risk management approach also.

That’s the point mate, risk management is very much important issue; your profitable strategy is nothing if you don’t follow the rules of risk management policies.
 
The traders who are particularly beginners for all time fall a great loss by taking high leverage due to non-sense planning and zero risk management policy . so, it is more appropriate to acquire proper risk management policy before using high leverage . actually from all trading elements leverage is one which always contains too much risk.
 
Hello guys! A person who knows how to take calculated risks is always a good trader. Trading is the game of taking risks but there is difference between skill and suicide. You have to be known of what you are trying to do on the market. Do you people know?

Yes, traders need to know the situations of the live market! Although, Forex is all about probabilities; but good skilled traders are able to trace the market.
 
Risk management is a very important money management step that ensures the success of a trader in the forex market. Without proper risk management practises, any trader can lose, whether experienced or a new trader. One should avoid having a big ego that stops you from managing your risks
 
I think that we are all streaming to perfect that technique with which we would be able easily to spot right lowest and highest price in current market trend. It sounds easy, but in reality, it is very demanding task
 
I think that we are all streaming to perfect that technique with which we would be able easily to spot right lowest and highest price in current market trend. It sounds easy, but in reality, it is very demanding task

No doubt, it looks easy but the reality is different; even it’s not easy task to understand the market trend as always. Since, counter trend moves are very much available here.
 
Forex market is a risky market and you have to take some risk on every trade. Risk management is the primary requirement of trading and you have to make a plan in order to manage your funds. Trading is a game of intelligence and decision skills. Do you have these skills?
 
Sininfinity, it is so true what you just noted. I agree that experience is extremely important in Forex trading. I think that all new traders should understand that they will get only initial knowledge from lessons and initial experience from demo account. Real learning starts with live account
 
Sininfinity, it is so true what you just noted. I agree that experience is extremely important in Forex trading. I think that all new traders should understand that they will get only initial knowledge from lessons and initial experience from demo account. Real learning starts with live account

To be honest; my own demo trading experience helps me a lot. Yes, in my early stage of live trading I faced few problems as like others newbie (greed, emotions etc) but I am flowing the funda that I made in demo.
 
Risk management is very important for maximizing profit. I risk 2% of my capital for each trade. Similarly, the most silly introduction to risk is 4%. It proposes I open most crazy of 2 trades. I figure everyone should keep up their hazard association rules. Without overseeing risk in trading entire arrangement achievement is farfetched. Stop loss is a part of risk management.
 
In Fx trading there are many things that you have to make sure to lead a comfortable and secure trading life with certainly. From one of them most important is the ability how to manage risk. Because in spite of good trading knowledge that’s not possible at all to lead a secure trading life without proper risk management approach .so, we have to focus on this trading approach besides acquiring proper market principle.

Using high risk reward ratio is really costly here; because Forex market is full of volatility! Traders shouldn’t use more than 2% risk.
 
Top