Risk management strategy

[Karley Walker]

Risk management strategy involves those processes that mitigate the risk level from trading. For example- high leverage, trading in high spread trading pairs, avoiding news trading and many more. It is obligatory to maintain risk management strategy because there is no other way left that can give traders profit on average.

 

[Bahiya Shinam]

Well said; actually high trading leverage isn’t a good option! If you follow the proper money management & risk management rule then surely you don’t need to use high trading leverage! In my live trading account I use only 1:50 trading leverage! And I have no plan to change this parameter!

 

[Nezami]

Forex trading is a place where we actually come to make money more but become loser ultimately , because of just emotions.

 

[Perforate]

Build a strong strategy with stop loss and limits. Traders must set a risk reward ratio. It’s never a good idea to copy someone else’s plan, they have different sets and goals compared to you. Try to stay consistent in following your own rules and desires. Volatility in the market can wreck your emotions, don’t allow your impatience to cloud your judgements.
The main thing is to always keep an eye for news or events.

 

[Andrew McCalam]

what you think guys there is any difference between money and risk management ?

 

[Alexander Hudson]

Risk management strategy works a weapon for the survival of a trader. You will find thousands of such traders who even don’t know what risk management strategy is. The ways and approaches that cut the risk of traders is known as risk management strategy. Traders should turn their focus on that.

 

[Karley Walker]

Every trader should make risk management strategy a compulsory factor to maintain. Lowering leverage, trading with low spread trading pairs, using flexible margin are all part of the risk management strategy. So keep following these techniques to flourish your trading style.

 

[Whichsoever]

Calculate a risk ratio and work your strategy around the plan, generate a budget to the capital you choose to invest, and only trade with that amount. Do not get carried away with fast money making strategies, you tend to lose, too fast.

 

[Eduardo Lucchese]

There are other ways too by maintaining which traders can maximize their trading profit. Like, they can lower their trading lot size, trading with low spread trading pairs, and use flexible margin level. Risk management strategy works as a shield against losses.

 

[Oscar Shumack]

Basically, maximum traders do is they use default trading tools to analyze the market but they don’t undertake the issues of geopolitical risk. It is because they don’t know where technical tools works 50%, fundamental analysis works more. Lacking of the knowledge of fundamental analysis leads them not to reach the doorstep of success in Forex.

 

[Davidfx89]

that is a good reply with good logic.

 

[Karley Walker]

I always use low risk reward! Trading is not such a thing that you can learn overnight rather there are so many aspects related to trading that you need to consider. Besides learning the ways of trading, you should learn how to manage risks and money. Profit is the outcome of all these things. Traders should strengthen the basis of their analysis.

 

[adamartin]

Risk management is very important in forex trading as without this you may lose money from one hand even if you are earning from another hand. Risk management is an isolated strategy but should be integral to the trading strategy. Earning profits and protecting your money, both should be central to your strategy.

 

[Subduplicate]

You can simply set stop loss at the level of your choice. If you want to make profit then you can set your stop loss at the level of your desired profit. One important thing is that you should use trailing stop loss so that you can lock your profit within your target.

 

[justintaylor]

Having a risk management system can be a life saver for forex traders. The market is highly volatile and risky. And the probability of losing money in trades is quite high. A trader is bound to fail in the absence of a risk management plan. Stop loss, risk/reward ratio and risk calculators can minimise the losses to a great extent.

 

[Davidfx89]

actually percentage generally we count according to our trading balance , if you have a smart amount then of course you can expect 10-20% of return. for that reason deposit is very much important than others issue.

 

[Triphibious]

Some important tips that you can apply to manage your risks are - by using stop loss and take profits on trade, by carefully using leverage with SL, planning your trading strategy before entering into a trade, backtesting the strategy, calculating expected returns. A trader must also diversify and hedge, and consider following the one-percent rule.

 

[SaadBinToha]

Uncertainty of the market is a threat to the survival of traders but it no longer remains a threat if traders know when to trade and when to avoid. To catch the trend of market, traders should analyze the market scritinizely.

 

[LouBega88]

Online free sources of learning can help traders enhance trading knowledge. Enthusiasm and strong volition is needed is need to grow this knowledge in traders. And learning develops cautiousness consistently, which is badly essential for a trader.

 

[Drizzle]

I think risk management strategy is something that a trader should pay most attention to. It is needless to say forex trading is subject to market risks. The only way to minimise losses in forex is by limiting your risk and only taking calculated risks. Set up stop losses to exit losing trades without any delay. Decide upon your risk/reward ratio and risk per trade. Also keep track of your drawdown and reflect upon what you are doing wrong. I would say risk management is like a protective mechanism that helps traders to overcome unfavourable situations without losing much money in the process.