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What Risk Management Do You Use?

November 2, 2009 by

Taking loss is a part of the Forex trading process. Even the best systems show losing positions and, over time, streaks of such losing positions. To protect your trading account’s balance from disappearing, it’s important to follow some money management (or otherwise called risk management) system. Limiting your potential loss per each position is a basic practice of such system. One of the first things that a professional real account trader learns to do is to limit the loss per position. It may be a very different value for different trading strategies, market situations and levels of the financial aggressiveness. Lately, I prefer risking no more than 1%-2% per trade, that not only helps me to save my balance but also to protect me from rather bad emotions, connected with the large losses. And how about you?

What part of your balance do you risk per trade?

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If you have some interesting comments or questions regarding the risk management in Forex trading, please, feel free to reply using the form below.

4 Responses to “What Risk Management Do You Use?”

  1. OPSINGH

    very very good site. very informative. this was my first visit will visit your site as soon as possible.
    opsingh

    Reply

  2. lineal trend

    Never more than 5%, it´s just a recipe for disaster.
    I do use hedging, my broker aloowes yt (ACM ttp://www.ac-markets.com/) but only during big news releases, you know like Payrolls, when in about 20 seconds you can get 50 pips, but I know when to pull back, I’m not a risk taking trader :)

    Reply

  3. Jacek

    My goal is to survive on the market and then constant profits will appear. Therefore I am strictly limiting my risk management. If you put 10% in one trade after three losses you lose third of your capital. When risking 1-2% you need dozens of consecutive losses for margin call.

    Reply

  4. Ntandazo

    Is was very very mativative big time

    Reply

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