Risk Management

Discussion in 'For novice traders' started by Tengkorakfx, Oct 8, 2017.

  1. Tengkorakfx

    Tengkorakfx Member

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    Risk Management Forex is managing of the magnitude of risk in the transactions that we do. How to manage this risk depends on the amount of balance contained in our trading account.
     
  2. Roman Rias

    Roman Rias Member

    It is absolutely vital that we are good at risk/money management. If we are not good at these things then we would struggle, so that’s why we need to be extremely wise with handling of things. As that is how we will make money consistently.
     
  3. It is important for people not to worry exactly too much if they are not doing right risk management, as it is not possible for everyone to be perfect at it. We just need to put 100% effort; it is something that should be enough to help through with working.
     
  4. andengireng

    andengireng Member

    Risk management is a very important part of trading. Trading is a business with the aim of making a profit. And to get the benefits, we must take into account potential losses that will occur. Ironically this is often overlooked by traders. Traders always focus on the trading methods to scoop up the pip and do not care about the size of the lot or volume used
     
  5. Tengkorakfx

    Tengkorakfx Member

    yeah, as we known that Risk Management is very very important think in forex trading and we must to keep this on every our trading activity. we also must to learn about Money Management to make our trading perfect in management side and we can earn much money properly.
     
  6. andengireng

    andengireng Member

    One form of risk management is the probability of winning and losing (win loss probability). In general, traders want the probability of winning more than losing. For example, a trader under certain conditions, will create conditions if he wins, he will get $ 500, and if lost, he will lose $ 250. This distance is what is in forex term called 2: 1 win rate. Obviously if the opposite happens, then the trader must immediately get out of the transaction, or he will suffer a significant defeat. To technically calculate the probability of profit or loss, can use stop loss and take profit facilities. Can also calculate using profit calculator.
     
  7. Tengkorakfx

    Tengkorakfx Member

    Stop loss should be used in every trade because it will help us to manage the risk in trading. the good trade has plan trade. so we won't loss many fund in our trade and we can recover easily if we got lil losts of fund.
     
  8. andengireng

    andengireng Member

    Often we see examples of cases where a trader who has a good trading strategy, but the transactions that do not even make a profit, but in the end even lose money. This can only happen if a trader has bad money management (Does not put Stop Loss or Stop Loss is too small, so easily hit before the price reverses direction in accordance with the original forecast of the trader)
     
  9. Tengkorakfx

    Tengkorakfx Member

    This can be means that a trader should learn more about their trading system so they can put the proper SL level and set the appropriate lot size so they can trade with a good risk management. And it's better for a trader to learn about support and resistance to spot the level where the price would bounce...
     
  10. andengireng

    andengireng Member

    Do not trade in a way that gambling or floating holds the loss continuously without wanting to lose money, even though it is clearly dragged away, especially on Forex. Because it is very risky. EXCEPT if you have a certain trading strategy that does not use SL and has prepared a capital that is able to hold up to its maximum point.
     
  11. broforex

    broforex Member

    Risk management is a very important part of trading. Trading is a business with the aim of making a profit. And to get profits, of course we must take into account potential losses that will occur. Ironically, this is often a concern for traders.
     

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