important tips in risk management

[kaiceaziz]

Every trader has a fear to risk his own money in forex, but if he skilled enough he can manage the risk and decrease his losses to minimum. Risk management tools and techniques are things that you need to survive in the volatile market. And there are many tips help you managing the risk.

The first thing is the stop loss technique. Stop loss is a must for every trader to reduce his loss and stay away from margin risk. Other thing is to know how to set 'Risk-Reward Ratio' according to the current market flow. The most important thing you have to understand is you never have to maximize the available margin. Keep it at 10 to 20 percent on each trade. And one last thing you have to avoid margin in uncertainity times.
Managing the risk on each trade is important ways to protect your account and yourself.

 

[gkintl]

Risk management is one of the primary requisites of successful trading. Without adequate risk management even the best of the trading strategies will fail over a period of time. However, it is easier said than done. Managing risk is not an easy task. A trader should also negate risk while making reasonable return from the trade. An assessment of risk to reward ratio is the first thing to perform for managing risk effectively. This is followed by deciding the proper trade volume and allocation of capital. Usually, not more than 1/3rd of total capital is allocated in a trade. Compulsory use of stop loss facility is yet another way to reduce risk. These techniques are always reliable from the perspective of a trader.

 

[Pettyeve]

Risk management is a very important thing in every trade we make. In every position we have, the trader should not forget that he or she will lose. When a trader is preparing for his or her trade, a careful examination of the trade is important so that he or she will know his or her risk ratio. What percentage of the capital should be risked.

 

[Decub]

Risk management is a practical thing. It doesn't grow on trees. It is that which the trader gains from learning how to do it on his own. Honestly, risk management is something that you keep doing over and again till such a time when you can perfectly get it right. Sometimes, it comes with some trial and error.

 

[kasual]

The tips is know our own risk tolerance. And don’t use the margin which it exceed from risk tolerance. Traders have chance to conduct wrong analysis and make wrong prediction. Which mean, they’ll get loss in trading. If traders risking the margin exceed from risk tolerance, surely the impact is traders will get high capital decrease.

 

[Bonyi]

The important thing here is use stop loss and take profit strategy to minimize loss and maximize profit. This will help you manage risk in forex trading.

 

[Nezami]

I have seen many times that by and large traders try to make money very rapidly by using high leverage and practically they fall a great loss due to non-sense planning and zero risk management policy . so, before trading with high leverage we have to know how to manage risk.

 

[gabanda]

The risk management is also very important in forex trading because to have good risk management will allow us to get maximum results when trading. because the forex risk is very high and therefore, we should always use SL and TP for we can minimize risk by either

 

[gabanda]

Yes risk management, because as trader they can't always able analyze the trend market properly and accurate all the time, with risk management hence any trader can manage money not only to thinking about profit, but also need as consideration

Of course, good risk management will help us to be able to secure our account properly so that it will benefit us. For that, we must always have a good risk management. Therefore, we must always use the SL and TP when trading to minimize the risk well

 

[Timothy ForexMart]

Well if you want to properly manage your Invested money its essential that you not only concerned about using small leverage on your trades i.e %2-%3 on each trades but also required to have right strategy so that your account keep growing..

 

[sininfinity]

The tips is know our own risk tolerance. And don’t use the margin which it exceed from risk tolerance. Traders have chance to conduct wrong analysis and make wrong prediction. Which mean, they’ll get loss in trading. If traders risking the margin exceed from risk tolerance, surely the impact is traders will get high capital decrease.

Traders can't be right all the time. Then there won't be any activity in the market. lol It's because different traders have different views, the market moves is various directions.

 

[Fx Master]

By and large traders in particularly the newcomers fall a great loss by taking high leverage due to non-sense planning and zero risk management policy, nothing to do with high leverage at all. So, before trading with high leverage we have to know how to manage risk. Actually, no one becomes successful from this trading place at all if he does not know how about risk management approach completely.

 

[sininfinity]

Yes every trader having own psychological level and also ability to absorb information, although monitoring same pair and work on one broker, but might having different view and analysis

Yeah two trades won't have same psychology. It can be similar but not same. You will see two traders using a single system does not get the same result.

 

[Andrew McCalam]

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.

 

[arjun]

The only tip to manage your risk is to invest that amount which you can afford to loose in forex trading.

 

[Ralfbaby01]

Understand the interaction between lot size and stop loss to calculate possible losses

 

[Max Trade]

I think first of all we the traders have to ensure what actually risk management in Forex trading, using a small leverage is not a part of risk management , it’s a part of avoiding losing , mostly of us think only high leverage contains risk. But practically that’s not at all. Every part of this trading place contains risks.

 

[Faal]

You are absolutely right, stop loss is the most important trading tool here! On the other hand, traders need to set their stop loss position after doing huge study on current market! High risk reward ratios always bring high losses in trading.

 

[Lee Mark]

As like others new trader, in my initial stage of trading I was also tried to avoid Sop Loss trading tool! Because then I didn't know the value of stop loss trading tool! Whatever, now I have 4 years trading experience, and I have no doubt on importanceness on Stop Loss trading tool. Now I always use SL in my trading.

 

[Nezami]

Maximum traders think by using risk managing plan it is possible to make money very rapidly by using high leverage , but I think in order to my trading experience despite of proper RM that’s not possible at all to make profit by leverage , if you don’t have sufficient balance.