Trading Discussion Proper risk management

[Ivo Zetticci]

Most new traders use mostly high leverage or the default leverage of 1:500 or 1:1000 in most forex brokers. It’s best for small traders to give more margin though it is also risky. Try to minimize your risk if you really want to make a profit from this market. Learn a proper risk management strategy which I learned from my broker Eurotrader. The broker also offers the best trading services including leverage up to 1:500, low and tight spread, and many more.

 

[Ray Martinez]

News and event influence the forex market. So, it is wise to aware of the important news release and political events in the world. The economic calendar is the best way to follow. There are a lot of sites that provide an economic calendar. However, my broker Forex4you provide it to me. For news traders is essential for their trading analysis and for other traders it is essential to avoid trading during that time.

 

[btaliat]

Forex is one of the high risk investment that needs much training before it can be done. But most newbies are only attracted with the money and not with the training. There must be risk management first, this will guide the users how to trade and not to trade with more of his money.

 

[Chibson]

Forex trading is a very risky venture and at the same time it is also a very profitable venture and it depends on the perspective you want to see it. It is very important you learn how to properly manage risks before venturing into forex trading because it is risk.

 

[Wisdom01]

Risk management is really important that is why it's recommended that you make use of about 59% off the total money in your wallet and invest ,as this could fetch you more gains on a long run and if you make loss you won't be too bothered because you still have some amount of money in your account

 

[Asahi]

Forex education helps a trader bring success ultimately. Initially, you better off staying away from paid courses because paid courses are advanced in maximum of the cases and you can’t capture it. Eurotrader also provides free educational program for traders. The broker allows traders with a whopping 111% deposit bonus.

 

[ShyCube]

Risk management is an integral part of forex trading, which if ignored may lead to huge losses. I have certain trading rules, which include:

1. Always trade with the money I don’t need
2. Use stop loss order or limit order
3. Setting R:R ratio to a minimum of 1:2
4. Trading only 1% of the total available margin
5. Not increasing the size of my positions after getting a few profitable trades
6. Using controlled leverage

These are some of the points that I have always kept in mind since the beginning when I invested just $100 with fxview. Trading by the rules always helps in the long run as they did for me. I can say I’ve come a long way

 

[Dora Wi]

Very true, high leverage can magnify not only your gains but your losses, too. One of the most common mistakes beginners make is not using proper risk management - it is an important skill to master, regardless of whether you trade with leverage or not.

 

[AdamG]

Hi all,

It is a fact that you'll experience negative experiences when trading with crypto. When we say adverse events, we refer to transactions that do not match the outcome you want, unusual price increases, mishaps and many other unpleasant events. The risk of trading is common and every crypto trader has to take risks.

Risk management strategies define how you will reduce your risk when trading. Here are some risk-management techniques you should apply to your trading.

1. Have a Solid Trading Plan
2. Only Invest What You Can Afford to Lose
3. Size Your Positions
4. Limit the Use of Leverage
5. Always Calculate Your Risk-to-Reward Ratio

Also be updated with current news and what's happening in crypto market. You should know when is the best time sell or invest. For this keep yourself updated with present news and future predictions ex bitcoin price prediction for coming years from reputed sites. I follow Coinmarketcap and Coinpedia.

 

[Winebibber]

Hi all,

It is a fact that you'll experience negative experiences when trading with crypto. When we say adverse events, we refer to transactions that do not match the outcome you want, unusual price increases, mishaps and many other unpleasant events. The risk of trading is common and every crypto trader has to take risks.

Risk management strategies define how you will reduce your risk when trading. Here are some risk-management techniques you should apply to your trading.

1. Have a Solid Trading Plan
2. Only Invest What You Can Afford to Lose
3. Size Your Positions
4. Limit the Use of Leverage
5. Always Calculate Your Risk-to-Reward Ratio

Also be updated with current news and what's happening in crypto market. You should know when is the best time sell or invest. For this keep yourself updated with present news and future predictions ex bitcoin price prediction for coming years from reputed sites. I follow Coinmarketcap and Coinpedia.

Right! Trading forex properly needs all these in proper proportions. Traders should make their trades diligently while considering all the aforementioned factors.

 

[Mataracy]

I believe that ; risk is a probability that something must occur in the future which one must be looking a a way to reduce the risk in to the bearest minimal if not completely remove.
Every business involved risk which one must take in order to make good profit. Taking risks depends on the capacity of individual and how expectant that one is in order to gain more profit.
There are some business which involves taking high risk and yet did not worth it. So in this case one need to be moving away from such a risk because of care is not taken its possible that one may enter in to trouble and the business may not latter yield any good thing in the future.

 

[FXOchartist]

High leverage like as double edge of swords, when skills not yet supported using high leverage could be disastrous account in short time, although at one edge high leverage could boost profit, however on another edge possible to get quick margin call.

Each broker can offer different spread in different market, like FXOpen offer leverage in forex 1:500 and in crypto account only 1:3.

 

[Sotherefore]

Forex trading can be profitable if you know how to play your game perfectly , that is what matters in the forex market but as long as you are not ready to play your game perfectly , the possibility of making profit in the forex market will be very slim..
I've traded a live account before and I am doing it currently , one of the things I've been able to observe is that if you're looking for opportunity to make the quickest profit you may not likely succeed as a trader , you just have to be very careful when making analysis and only enter the market when you are very sure of your analysis .with that you will have a high possibility of winning in most of the trade you are entering.
And also everything requires dedication and that is what you need in your journey as a forex trader.

 

[Jack Reacher]

High leverage always puts them into risk but they never compromise with the issue. They like taking high leverage in their trading in order to earn more. So, avoiding high leverage should be the target of traders. Besides so, traders should trade in low-spread trading pairs. Eurotrader broker provides flexible number of leverages based on account types.

 

[SolarCrook]

Learning and implementing an effective risk management approach is a must for a profitable trading career. There is no alternative method to deal with the hazards of FX trading.

 

[Gaspard Edwards]

A common error made by new traders is to think that risk management merely entails placing stop-loss orders very close to the entry point of a trade. Running stop orders habitually too close to your entry point, as demonstrated by having the trade stopped out for a loss, only to have the market turn back in your favour and having to endure watching price advance to a level that would have returned you a sizeable profit...if only you hadn't been stopped out for a loss, is one factor that frequently contributes to lack of trading success.

 

[Kamala Hooper]

To minimise the losses which occur as a result of fluctuations in the exchange rates, effective forex risk management and the right trading psychology are very crucial. It will result in much safer, more controlled trading.