Learning is the best policy here! Like, in my early stage of trading I used only 1% risk then my success ratio was only 60%! But right now I am using 3% risk with 75% success ratio, because of my technical and news trading knowledge! Without knowledge, 1% risk reward ratio is risky! So, learn more and more!
The risk of loss cannot be prevented unless you do not trade at all. However, it can be reduced if you use only high-probability entries in your trading. To make sure, your strategy generates such entries, you need to backtest it first and then demo-test it.
Furthermore, a high risk of loss is not a problem in case the size of losses are not too big compared to the size of the average win. You can have a successful Forex trading system with 90% loss rate if the average win is 10 times the average loss.
Furthermore, a high risk of loss is not a problem in case the size of losses are not too big compared to the size of the average win. You can have a successful Forex trading system with 90% loss rate if the average win is 10 times the average loss.
//-----Can anyone share your ideas on how to prevent the risk of loss?
Thanks guys..
refusal to trade against the 4 hour and daily trend with stoploss and profit targets based off the atr seems to keep me on the right side of the fence..... but that only lowers the possibility of loss, in no way does it prevent it......h
I don't risk more than 50 bucks in a deal (or even less), it depends on the deal size
always set tight stoplosses
always set tight stoplosses
Yes, I agree. Without proper learning in Forex you will not be successful.
We must still continue to learn even if we are already earning.. It is important that you take time to research and plan your trading business, Traders who start trading too soon without proper learning and without a well researched trading plan often find themselves back at the beginning, but with a lot less trading capital.
Unfortunately, you cannot prevent the risk of losses fully. Trading on the Forex market involves risk, and all you can do is learn how to manage this risk properly. Risk management is the one of the most important and most frequently overlooked topics in Forex. But in fact, trading without proper risk management rules is more like gambling!
It's the risk of loss that provides the opportunity for gain...just ask your counterpart to a winning trade! If you win, they lose! If they can't lose, you can't win!
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