Risk Management

[Rambo35]

A much discussed topic and for a good reason. Risk management is one of the most important aspects of trading, yet too many new traders either ignore it or think that picking x-% as a static number of how much they are willing to risk is all they need to know about it on order to manage risk.

My advice is to spend a little more time in order to understand why risk management is important and how to properly implement it. Leverage is not going to cause your account to blow up; a bad strategy and the absence of proper risk management is a one-two punch which will knock your portfolio down. There is more to risk management than simply having x-% as a number to keep in mind and setting a stop loss which will close your trade, at least in my opinion.

 

[Master Forex IB]

yes it is reality that without risk management no trader is successful in forex market. We are profitable only when we are good in risk management. A trader should know how much risk he is taking in any trade and how he will deal with it . when his plan is clear he will try to do trading in m anaged way that will limit his risk to the certain level.

 

[David Train]

yes it is reality that without risk management no trader is successful in forex market. We are profitable only when we are good in risk management. A trader should know how much risk he is taking in any trade and how he will deal with it . when his plan is clear he will try to do trading in m anaged way that will limit his risk to the certain level.

Totally agree. The first rule in risk management is to calculate the odds of your trade being successful. To do that, you need to grasp both fundamental and technical analysis. You will need to understand the dynamics of the market in which you are trading, and also know where the likely psychological price trigger points are, which a price chart can help you decide.

 

[graceb]

I agree with you in order to succeed in forex trading their are a lots neededto be learned and one of them is risk management.We should not take this for granted knowing this is one major factor to master when trading.