Managing 2% risk

[Kevin Vogt]

Yes I agree with you. Most newbie traders do not follow risk management rules. They live in a false world that no matter what they can make money by taking high risk. Some random profitable trades make their perception strong.

 

[Karley Walker]

Each trade requires a 2% risk to protect the fund. Every trader should trade by managing risk.

 

[Cooper Truebridge]

Risk control is required to make a consistent profit. Therefore, no more than 2% risk can be taken in each trade. And you have to manage a 1: 2 risk ratio and trade.

 

[Kevin Vogt]

No matter what, loss will always be there in forex trading because this market is bound to loss and that is why we must work hard just to ensure that we eradicate part of the loss because we can never get rid of such loss but to minimize it.

 

[Nezami]

Leverage is simply the credit offered by the broker to trade higher volume. Leverage is a double edge sword. It can result in huge profit or substantial loss. it allows an investor to grow his market exposure to a level that exceeds the initial investments. It always surrounds risks , so it is more appropriate to acquire proper risk management approach before using it.

 

[Davidfx89]

risk is everywhere , we know all. but there is no one who can avoid risk in spite of having good knowledge and experience.

 

[javierclayton]

@Nezami Not only risk management but risk identification and risk evaluation at the right time.Planning ahead can really make a difference. A well planned strategic approach towards risk management can save a trader from causing irreparable loss.

 

[spearrider]

I suppose that it's kinda difficult to manage risks and funds when you're a beginner. To my mind the first rule which every beginner shoul remember is to open a position with 1-2% of your deposit. It's a great proportion because if you lose then you won't be disappoined too much, however if you win you will be happy despite the fact that the sum won't be huge. After a novice will gain some experience who will start analyze every asset and understand whether it's wise to open a position or it would be better to wait for a little bit because of the volatility or flat (if there aren't any trend).

 

[Moralsand]

2% risk is hard to achieve but it is what we should aspire to. Risk management is the key moment in trading and if we fail or take too much risk, our trading will be at stake.

 

[Braddatt]

I guees it's okay to have such a risk management strategy. Actually, it's really important to have a proper risk management and money management strategies because they can possibly once save your deposit from dumping. In my opinion, these two things are considered to be fundamental in trading activity, that's why I advice all rookies to learn these two things in the very beginning. It's actually your first lesson. Never open a deal with more money than you might lose. If you might lose, for example, 5$ per trade, then you should open a deal with 1-3$ and no more. 2% of your deposit is the maximum sum which you can afford yourself to lose.

 

[High_t]

I guees it's okay to have such a risk management strategy. Actually, it's really important to have a proper risk management and money management strategies because they can possibly once save your deposit from dumping. In my opinion, these two things are considered to be fundamental in trading activity, that's why I advice all rookies to learn these two things in the very beginning. It's actually your first lesson. Never open a deal with more money than you might lose. If you might lose, for example, 5$ per trade, then you should open a deal with 1-3$ and no more. 2% of your deposit is the maximum sum which you can afford yourself to lose.

Nice example, but yes this is a good explanation.

 

[Gito Dinev]

Risk management is avital necessity for a trader because high risk wards a trader off the market.

 

[Nayek Pichai]

Risk management is highly essential for traders but most of the traders don’t pay heed to this issue owing to which traders are failure.

 

[Bahiya Shinam]

If you take only 2% risk, that means you are maintaining true risk management policy and it will take you more time to derive profit on the market.

 

[LouBega88]

Risk management is a vital component for traders because it keeps a trader on the safe side.

 

[Gito Dinev]

It falls in the category of risk management and traders should not use more than 2% risk provided that their capital is small.

 

[Nayek Pichai]

Mt5 is more complex than that of mt4 trading platform. Mt5 is mostly appropriate for stock trading. So, it’s up to your choice that on which platform you prefer trading.

 

[Bahiya Shinam]

A professional trader trades by following risk management strategy. A professional trader invests his full time in trading and hos way of trading is different from other traders.

 

[Gito Dinev]

Demo account is such a geat way to learn. Demo account not only helps traders in developing experience but also in enlarging cautiousness.

 

[Gito Dinev]

You can even start forexs trading with 10 dollars, but you need better money management plan to survive in the market with your investment.