Risk Management In Forex (II)

[willy]

this is the biggest and very important rule in the forex when we start trading forex in our real account we must learn how to trade with strong money management because if we neglect this rule the result must be margin call to our accounts

 

[kasual]

Opportunity to use big lot size make taders to conduct aggressive trading. Use maximum lot without considering capital capacity. If traders trade with high capital, doesn’t create a problem if they are use big lot size in trading. However, if traders use small capital only, doesn’t wise approach if they are choose to use big lot size in trading.

 

[gkintl]

Opportunity to use big lot size make taders to conduct aggressive trading. Use maximum lot without considering capital capacity. If traders trade with high capital, doesn’t create a problem if they are use big lot size in trading. However, if traders use small capital only, doesn’t wise approach if they are choose to use big lot size in trading.

Trading large lots with small capital is highly risky. However, a good trader can really capitalize on the leverage by entering and exiting at the right moment. Such a trader will not face any risk. It takes a lot of experience to trade huge volume with small capital. Until then, it is in the best interest of a beginner to trade small lots. Under no case a trader should expose more than 1/3rd of his capital in a trade. If that can be practiced then trading will be almost stress free. Losses, if any, can be recovered without any big trouble.

 

[kasual]

Since the risk is very high, traders will suffering margin call easily when they are trade without proper risk management plan. Traders can get profit all the time though use the best strategy, if traders doesn’t manage capital properly or have no proper risk management plan, they’ll losing high once they are make wrong trading decision.

 

[Decub]

Sure, it is just greed that leads to such. Trading with high lot size when the trader knows he only has a little capital is more like intentionally burning his capital. That is why I think that discipline has such a big role to play when a trader is making any trading decision. It's not about the presumed profit but the presumed loss.

 

[sindarin]

Since the risk is very high, traders will suffering margin call easily when they are trade without proper risk management plan. Traders can get profit all the time though use the best strategy, if traders doesn’t manage capital properly or have no proper risk management plan, they’ll losing high once they are make wrong trading decision.

That is right, risk management is important not only for our capital but also our own mental to face the harsh forex market. With a better management traders tend to get bigger profit or if not, lesser loss.

 

[pinyin]

this plan is important . it is a main plan of forex business . when we can manger it . we can be lose many money

 

[budado]

Risk management is not a plan. Its a form of management., We don't do anything in here but understand the risk involve around the leverage, lot size and pairs that we are trading. Risk management does not teach you on how to trade. Its teach you the risk percentage.

 

[Decub]

Risk management is what every trader needs. It's not an option but a necessity in other to avoid losses. Even though it is something every one needs, there are those that do not see the need for a good risk management plan. It always starts with us especially when it comes to trading and capital management.

 

[budado]

The scope of risk management is leverage, trading pairs and lot size. If we understand this three we going to know how the free margin is computed. In this way we know if we open a lot size what will going to be our free margin after that.

 

[Jairaj Kothari]

What kind of risk you are taking about?

 

[avelaskes]

Of course risk management is very important. It prevents you from failures and losses. That is why it's very important to manage it in a right way, taking into account your strengths and weaknesses in trading.

 

[Johnson]

Risk management is indeed the important thing to consider while trading and development of a trading plan, so proper risk management techniques are really crucial for the success of a trading plan and to make some profits.

 

[sindarin]

What kind of risk you are taking about?

Risk is risk dude, you know something like when you lose your money and you feel bad for it, that is risk. Loss = Risk and you must trying to manage it because forex is unpredictable business you may win and loss in few minutes or vice versa. The most simple example is Planning of how much you can loss for today depend on situation.

 

[Johnson]

Risk is a kind of factor which you cannot avoid in the market, I think in the Forex Market it is more than anything else, so we need to have a risk management plan in order to avoid those risk in the trading plan, in order to protect the portfolio.

 

[pinyin]

we need risky managerment plan. with this plan we will know when we entry market, when we exit. it is important. when we has great signal but we must know when we exit. becuase your signal can be wrong in next time. that mean now your has profit but it can be lose in short time. this market is very fast. we need protect our profit.

 

[smithhelen]

I think nowasays traders talk a lot about risk management but only a small percentage really applies it.

 

[pithyon]

thanks for you share about risky managerment. it is important for trader. when we can control our money we can make money. i learn some lesson from your share. now i has money managerment for myself

 

[sindarin]

I think nowasays traders talk a lot about risk management but only a small percentage really applies it.

Because they all don't realize how important about this risk management, only few apply it because it sounded so hard but in factual that is all is easier than what it seems. Afterall, having risk management could reduce your effect of losing money.

 

[budado]

I think nowasays traders talk a lot about risk management but only a small percentage really applies it.

And worse many don't even know what is risk management in forex trading is. They simply will say that risk management is managing risk. But ask them in details what is the scope and limitations of risk management and they can't answer you. So how can they implement if they don't know what is risk management to start with.