Risk Management in Forex

[Romen esko]

Hello Friends,

A forex trader trades in order to make money. To be able to make money consistently we have to know how we can manage risk. The risk we run when trading is that we will lose money. If you trade without regard for the risk you are taking on the trade or without any money management system in place, you might as well be in a casino and gambling your money away. By having a money management strategy you will not only be able to manage your risk but in the end you will lose less on losing trades and therefore make you more profitable.
Money begets money so obviously you are going to have to set aside an amount of capital to start with. Also you will need to learn how to trade and you will need to learn about technical and fundamental analysis. There are many courses available but they are not free so if you intend to hit the ground running and have the cash available to invest in some courses then that might be a good solution for you. However, if you are patient you will find that all the knowledge you need to be able to trade successfully is free on the internet. You just need to discipline yourself to focus on your own self education and be a good student. Whether you’re going to a fundamental or a technical trader most trading platforms offer all the forex charting software you need to be a profitable trader. Remember that to regain 40% of lost capital your percentage win rate needs to be around the 70% mark. That is the reason why you have to protect your account with good risk management because it is much harder to win back the money you have lost.

Thanks And Regards.
Romen Esko

 

[ph_trader]

one of the most basic things in forex is risk management, and a lot of new traders take it for granted not thinking that neglecting it is one of the reasons accounts are blown

 

[SilverRay]

Risk management is very important in any business. A Forex trader should consider about these risks more than others because they are dealing with currencies and they have higher probability of risks.

 

[NVP]

Risk management is very important in any business. A Forex trader should consider about these risks more than others because they are dealing with currencies and they have higher probability of risks.

Silver ray - you are here to flog Gazebos ?

 

[NVP]

Hello Friends,

A forex trader trades in order to make money. To be able to make money consistently we have to know how we can manage risk. The risk we run when trading is that we will lose money. If you trade without regard for the risk you are taking on the trade or without any money management system in place, you might as well be in a casino and gambling your money away. By having a money management strategy you will not only be able to manage your risk but in the end you will lose less on losing trades and therefore make you more profitable.
Money begets money so obviously you are going to have to set aside an amount of capital to start with. Also you will need to learn how to trade and you will need to learn about technical and fundamental analysis. There are many courses available but they are not free so if you intend to hit the ground running and have the cash available to invest in some courses then that might be a good solution for you. However, if you are patient you will find that all the knowledge you need to be able to trade successfully is free on the internet. You just need to discipline yourself to focus on your own self education and be a good student. Whether you’re going to a fundamental or a technical trader most trading platforms offer all the forex charting software you need to be a profitable trader. Remember that to regain 40% of lost capital your percentage win rate needs to be around the 70% mark. That is the reason why you have to protect your account with good risk management because it is much harder to win back the money you have lost.

Thanks And Regards.
Romen Esko

Theres a far greater Risk than MM for most traders

its called the Self-illusion of Trading knowledge

kills most people in the long run MM or no MM

N

 

[duderex]

I think a good trader has a good risk management, I try to keep my risk small to avoid big loses

 

[NVP]

I repeat again ...........the real risk most traders have is the illusion they know what they are doing

MM just reduces the time taken to go bust ....

N

 

[Jack Francisco]

Without a doubt forex market is something which can earn you thousands of dollars in minutes but also it can blow all your funds with in seconds ... I have seen many people who lost all their income and are now struggling to pay their bills.

That why risk Management in Forex Trading is an important tool to reduce loss. Therefore all most all traders go for it. Even some traders follow their own risk management strategies while some go for prepared strategies.