You’re welcome. Good luck to you!!
Let me know if you have any more questions…
Are U for real? No little guy can play this game is what your saying?
Risk management is very important in trading it save our money from huge losses and we should learn the basics of money management skills to maximize our trading profit.
Yes because not alwasy we can analyze the trend marlet correctly, sometime trend market move dynamic and unpredictable, without risk management hence will harmful account if one mistake occur and order against the trend, and with risk management we can measure how much risk in single plan trading.
I agree that money management is very important but you need to keep in mind that sometimes we need to take risk in order to profit. We come on forex to get-rich-quick sometimes our trading analysis can force us to break money management - increase lot size, widen TP or SL. It essential thing in my USD/RUB trading with Hotforex
To me the leverage is somewhat irrelevant, but always the more leverage the better.
But your lot sizing should be based on your account balance and trading style.
I personally, when opening a trade, use 1 micro (0.01) per $1175 in the account balance.
For reference, I typically trade on 200:1 leverage.
yup that might be the case, basically there are different approach to risk management, the most basic is the 2% rule, which in my opinion is more applicable for larger accounts, personally i tend to risk more, 10-20 but that i would never recommend unless you know what you are doing.
Don’t focus all your attention on entries and indicators. Only the traders who understand the importance of risk management and statistics have a chance to get success in the Forex Trading. Also you can take experts advice as I took it from MMF Solutions Singapore and I really enjoyed the benefit in Forex Signals.
We should involve only our amount in trading which we afford to lose, I think your risk management is quite good as you are trading with 1000$ and taking on .03%. I also take the minimum risk and do not like to trade with greedy intention as taking less risk can be useful and we can survive long time in forex.
There’s that, and also avoid trading during high impact events unless you are absolutely sure you can trade them. Always be mindful of support and resistance levels you see, don’t open new positions unless there is a proper breakout.
Basic risk management is that you should select an amount in dollars which you can easily afford to lose on a single trade and then only adjust that amount to accommodate your stop loss on a particular trade.
Risk management is very important in Forex so every one of us should improve our risk management skills to maximum profit earning ratio and we can improve it on demo account after proper practice.
Yes its because you trade with leverage. Mathematically you are guaranteed to have your deposit wiped out if trading without Stop loss when number of trades converges to infinity.
Leverage is needed on a FX account. A micro lot is equal to 1000 dollars. Your risk is how much you will lose in $$$ if the trade hits your stop loss.
When talking about risk management, the words of Monroe Trout quickly comes to mind “Traders should avoid putting stops in the obvious places. For example, rather than placing a stop 1 tick above yesterday’s high, put it either 10 ticks below the high so you’re out before all that action happens, or 10 ticks above the high because maybe the stops won’t bring the market up that fair. If you’re going to use stops, it’s probably best not to put them in the typical spots. Nothing is going to be 100 percent foolproof, but that’s a generally wise concept.”