a proper management of risks here

[Adam Jackson]

A risk/reward ratio is the measure of profit you intend to jump on a position with respect to what you are risking in the event of a loss. Basically, if your Stop Loss equivalents to 10 pips and your Take Profit is 50, your risk/reward ratio is 1:5. Risk/reward proportion is something else you can control. So as to build your odds of getting a profit, it's prescribed to consistently have a greater reward than risk.

 

[37riched]

Proper management of risks 101 is something like really do not got with bad broker at first, and only then to go to such theories. But that cofficient you already stated shouldn't be that high, basically you listed somewhat ideal I would say.

 

[momo3HC]

It`s about mix of good risk ration and success rate. Not only one of them.

 

[johnbrown_01]

Due to a highly volatile nature of forex markets , traders are exposed to a lot of risk. Hence traders should never risk more than they can afford to lose. Since risk can not be wholly eliminated , we can try at our level only to minimise it through stop losses, limiting the use of leverage , not sticking to a very few pairs,choosing pairs that are highly liquid.

Leverage really is the tricky part, provides extra funds but if not dealt with properly, can eat your entire account. Got to be careful.

 

[Ary Barroso]

Leverage really is the tricky part, provides extra funds but if not dealt with properly, can eat your entire account. Got to be careful.

I think so; having a proper game plan on leverage is very crucial; otherwise it will be more painful!

 

[Petez_FX]

Never risk more than 1-2% per trade, and aim for a good R:R. Always plan trades before you enter.

Sounds simple enough, but unfortunately a lot of people can't stick to those rules.

 

[johnbrown_01]

I think so; having a proper game plan on leverage is very crucial; otherwise it will be more painful!

Agreed, that's quite crucial.

 

[Cooper_01]

Never risk more than 1-2% per trade, and aim for a good R:R. Always plan trades before you enter.

Sounds simple enough, but unfortunately a lot of people can't stick to those rules.

Sometimes these simple rules become hard to follow.

 

[DT77]

Never risk more than 1-2% per trade, and aim for a good R:R. Always plan trades before you enter.

Sounds simple enough, but unfortunately a lot of people can't stick to those rules.

This is where psychological strength is required

 

[momo3HC]

Sometimes these simple rules become hard to follow.

Risk and money management are not so hard to follow.

 

[Baazex]

Risk management is the key after learning trade techniques, In trading business risk and money management are the things to focus and follow for a long term success.

 

[TFA]

proper trade management ... especially so for more risk averse traders