About the Risk Management Practices category

Help your forex trading by limiting losses and maximizing gains. Risk Management can be the difference between making money or blowing your account.

Trading Plan - You have one right? Why you need one!.

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No trading plan surely blew up account easily, no matter how much one make unless one make a plan.
Yes I have, because investing time and money to prepare a plan is far much better and profitable >>>>>>> than investing in market directly and slip. I wish I was matured in early days but that’s not long till I looked up where I fell down.

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For Forex Trading, risk management is all about the volume of loss or profit which occur as a result of change is exchange rate. Yes Risk management plan plays vital role to become a successful trading. Reason for why it should be include every trader know how to tackle loss rate.

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Managing risk in forex is an essential aspect and is just as important as your trading strategy.
The first step in risk management is to ensure that you are adequately capitalized. If you think you can turn a profit by depositing just $500 and hope to double this amount, then you have already made the first mistake even before you started trading.
Risks in forex happen because of unrealistic expectations. Traders expect to make 10% and even 20% returns every month. While this is possible, it requires a lot of skill and experience in the markets. Having a more realistic expectation can help you to remain patient and trade more effectively.
You can find books ranging from how to effectively manage risk by managing your trades to trading psychology.

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Great thread! Risk management is an extremely fundamental pillar in Fx trading. Saying that, it probably is the most important one as it’s the result of work put in, the actual result of the trade(s) and what you could have done better. After focusing on my R.M results are getting better, and it helped and helps me have an in-depth understanding of both my trading plan and system. Never ever neglect risk management!!

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There is a phrase that says: “The higher the risk, the higher the profit”, and that especially applies to Forex. All people who operate in the market want to increase their profits, although this means increasing their risks.

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Risk management is necessary for the trading, it can help you to manage your losses and trading strategies as well.

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Risk management is a imperative feature of
trading. As trader can measure and analyze
for various trading decisions.Stop loss is a
great option for risk management.

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“The higher the risk, the higher the profit”, and that especially applies to Forex. All people who operate in the market want to increase their profits, although this means increasing their risks.

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This is a cliche that is not as true as it might seem. Risk in Forex can be managed. Successful traders do it all the time. Managing risk DOES NOT have to reduce profit. I suspect the statement holds a lot of truth for those who do not know the difference between gambling and trading.

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Now there are so many original approaches to this, because trading is going through a new stage in its development and traders themselves are beginning to generate a huge number of unexpected ideas, and it’s really cool, I think that over time there will be more original discoveries and approaches.

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This is one of the key details in trading, which should be studied competently and accurately.
In addition, it is important to find exactly what suits you, because there are always a lot of nuances and details that can dramatically affect the process and the result. So you should definitely think thoroughly about this issue…

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Hi Guys! Doubt regarding winning ratio, which algo suits better between an algo with a 74% winning ratio (90 wins 31 losses in 2 years) and a 2nd algo with a 72% winning ratio (132 wins and 51 losses in same period of 2 years)? Money management is pretty much the same in both algos.
Tks!

Risk management is necessary, when one wants to trade and you need plan or strategy for your trades to reduce the losses.

I wish to know and learn more about trade plan, plz assist a beginner i have lost more than gain…

is there a simple way i can do this rather then lot calculator every time say 0.01 lot per ÂŁ200?

You have to choose brokers with a history of at least 10 years.

Not just that, you should also check that the broker is regulated or not. Because the information provided by the brokers could be misleading, but they cannot mislead the regulatory measures.

Yes this is True…
When risk is managed properly, then Profits comes immediately…

Yeah @feasible042. When the risk is managed properly with good trading strategies, then making profits won’t be a hard thing to do. But for doing proper risk management, it would take time to practice and learn.