Risk management plan of forex trading

[kxforexmart]

Traders have to learn the art of risk management in a proper way and if they can have the patience ,they can definitely trade as per the plan and can make good money from here in odd situation of market .

 

[Andrew McCalam]

In spite of good trading knowledge that’s not possible at all to lead a profitable trading life if you don’t know how to manage risk. I have seen according to my trading experience that by and large consider high leverage at many risks, but I don’t consider high leverage at any risk , if there is any risk it is completely with 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 proper risk management.

 

[Faal]

I can very well understand in spite of good trading knowledge that’s not possible at all to predict the real faction of this market with certainly. So I always try to manage my risk for avoiding risk. As like, before live trading, I use all my trading techniques in my demo account first of all to see the performance how it works. But practically we the traders who are particularly beginners don’t believe the importance of this trading place at all.

 

[kxforexmart]

yes each and every trader have to know the risk management properly so that they can balance their trading account from risk and profit and make a good target

 

[The trader]

By and large traders in particularly the newcomers think , only good trading knowledge can bring success in this volatile trading place , but practically besides good trading knowledge we have to ensure proper risk management policy , otherwise we that’s not possible at all to lead a healthy trading life with certainly despite of good trading knowledge.

 

[melvinkilback]

We know forex is a perilous business. That is the reason managing risk is essential. Money Management is one of the central piece of risk Management. I chance 2% of my capital for each trade. Likewise, the most senseless preface to risk is 4%. It proposes I open most insane of 2 trades. I figure everybody should keep up their peril organization rules. Without managing risk in trading whole deal accomplishment is unrealistic. What's more, about leverage I utilize 200:1 however my broker Markets Cube gives 500:1 leverage. I additionally like the broker's moment trade execution.

 

[lioneld]

To be honest, when I was a new Forex trader then I wasn’t such a serious trader on risk management policies! But now I am! Because, I know without following money management and risk management policies success is impossible.

 

[Nezami]

Many traders consider leverage as a borrowed of money. But in order to me , it is not a borrowed money but you use your money (capital) as leverage. Meaning you are betting your own money and increase or decrease the stake of risk by increasing or decreasing your leverage. for example if you use 1:100 leverage that mean if you going to incur loses your loses will be 100 times that your actual loses or if you make profit your profit will be 100 times more than the actual profit.

 

[Tom Latham]

In trading forex actually this is risky business and the market sometime not always we can analyze perfectly, sometime facing mistake in analysis, and we need risk management in trading, to manage the risk

That’s really true, there is nothing like perfect analysis in Forex, means no guarantee there! As a result, traders need to use stop loss trading tool thus they can avoid any unexpected result.

 

[lioneld]

That’s really true, there is nothing like perfect analysis in Forex, means no guarantee there! As a result, traders need to use stop loss trading tool thus they can avoid any unexpected result.

Well, do you like to use fixed SL or various SL’s based on the market context?

 

[MarvelPole]

Forex is a business where you take risks all the time. Theae risks might be low or high. You need to manage these risks according to the amount you have as a capital in your account. Spend only 2% of your capital in a single trade. Thanks!

 

[Smash Fun]

The reality is that in order to succeed you need to understand how the market is manipulated and how you need to participate to profit.

 

[lioneld]

The reality is that in order to succeed you need to understand how the market is manipulated and how you need to participate to profit.

Oasolutely, by the way what’s your risk parameter actually on per trade?

 

[Smash Fun]

It depends upon your risk per trade in terms of percentage and stops loss in terms of a number of pips. I have never fixed any number for it.

 

[lioneld]

It depends upon your risk per trade in terms of percentage and stops loss in terms of a number of pips. I have never fixed any number for it.

Same here; I am also trading without any specific number on SL & TP. Basically, I set my SL & TP according to the market requirements. So, I am flexible with these 2 tools.

 

[Smash Fun]

Trading forex is about probabilities, proper risk vs. reward ratio, and good money management. There are many things which we should consider while trading.

 

[lioneld]

Trading forex is about probabilities, proper risk vs. reward ratio, and good money management. There are many things which we should consider while trading.

Exactly, it is! Money management is a very important issue here; no one can expect such a consistent result without following the rules of MM.

 

[Oscar Shumack]

Risk management is very much needed to survive in this risky market.

 

[Kazumu Fukunaga]

Yes every trader should have some rules of what to do and what not to do in trading. It can help to reduce making mistakes.

 

[Kevin Vogt]

Risk management is very much needed to survive in this risky market.

Problem is most traders do not want to manage their risk. They suffer from overconfidence. As a result they lose money again and again and very few learn the lesson.