Risk

When asked on Meetpips.com about risk management I put “I think risk is to be calculated, not feared”. Please give me your opinion on this viewpoint.

Spot on! A lot of people shy away from the risks involved in forex or other financial markets, but the truth is that you are always in control of your risk for every trade or position, assuming of course you stick to proper risk management practices. There will always be that element of uncertainty in forex trading but traders can always limit their account’s exposure to that.

Exactly. If a trader throws risk out of the window they will blow their account time and time again. If a trader is so scared that they risk more than their potential rewards they will still blow their account. Planning and strategy is the key. Make a plan, figure in your risk then let your system do what it is designed to do. Thanks for the response!

If you use a TS then why simple not to follow developer’s instructions?
As you already trust your money to a system trading, then why not to trust to it to the end?)))
Use the safe range of risk settings and feel calm))))

Good planning is the key to success in our trades so if we will have a good trading plan with us then the chances that we are going to get a good income will certainly increase :slight_smile:

Exactly. I think it is because people focus on just how many pips they can get and how much money they will make in a trade instead of the art/science of trading and being good at something they like. I am personally trying to keep my TS simple and stick to it. Just be as good at trading it as I can.

Yes, Risk is not be calculated. Before making any trade, you must calculate and accept the risk so that when you lose it won’t affect you emotionally. Every trade has its percentage of risk. Whatever you are going to lose should be acceptable to you unless you feel you want to gamble.

And how do you offer to calculate the risk?
Just curious:)

In my opinion, risk = lack of knowledge.

Risk follows us everywhere. And if success is a target in life - you have to be ready to deal with risk.
I think, risk in trading is not any more or less than in any other business. It is just other kind of, more visible.

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Risk is part of the forex trade and cannot be completely eliminated and so it is important to practice risk management. In every trade it is important to calculate the odd of your trade being successful by understanding the market. And again one of the magnifier of risk is leverage . Leverage should be used wisely because the more leverage the more risk involved.

Yes, i agree. Risk in both money and capital markets is probably the only thing you can manage almost 90% of the time…

… the other 10% being black swan events, white dinosaur extinction phenomenas, and pink rabbits offering red pills with Baileys to pull you out of the matrix illusion.

Hi,
The way I look at it is one trade wont make me and one trade wont break me.

Cheers,
Simon

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You are right, controlling risk is one of the most important factor of forex trading. Even with the best strategy a trader cannot win consistently if he don’t have good risk management.

Risk is up to the trader’s choice. How much of your account you will expose on risk depends only on you and nothing else.

Risk is perhaps a single word to describe the probability of something negative occurring. We would rarely describe the chance of gaining a profit as a “risk” factor.

Risk is an integral part of life. Every time we drive a car, eat something, go on holiday, mix with others, etc we run the risk of accidents or health problems and so on. Generally speaking, we evaluate these risks and decide whether the probability of occuring is high or low or the impact significant or insignificant. Some risks we insure against whilst others we simply run with.

Trading risk is surely no different. We can (rather subjectively) evaluate the likelihood of a loss and also (in more concrete terms) its significance if it actually occurs. By building both of these into our trading strategy and money management we can help optimise the outcome over a period of time.

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Or if you forgot to set SL and fell asleep :smiley: