How to reduce risk

Beginner Questions
21

I concur. For the most part its enough to keep an eye on news particularly pertaining to the cross/crosses you are trading. Most platforms will offer an economic calendar of low,medium and high impact news for the up coming week, BP and FF too (often colour coded). If you are not in the habit of trading the news then one eye on this and fundamentals and the other on the charts will suffice. A caveat to this is make sure your not in a trade during high impact (red) news events.

If you trade high impact news as your main strat… err… rather you than me… good luck with that! :smiley:

22

If you really mean how do you reduce risk, all you need to do is learn to control your risk by sizing your positions (there are various position size calculators on the internet you can use to do this).

I personally fix my position size so that the risk is 1% in every trade.

If you want to reduce risk, just reduce the percentage risked per trade.

If you position size correctly, it doesn’t matter what leverage you’re using.