As we know, “the higher the risk, the higher the profit” is especially true with forex trading. All traders want to increase their profits, even though doing so entails increasing their risks.
But applying proper risk management strategies is very important is you want to sustain in forex. So with the greed of profit one should never ignore the risk involved with it.
Yes exactly!, In order to achieve a higher return, one has to take a higher risk.
We should always take care to follow risk management, and as a newbie what I actually believe is that we should not spend more than we earn, like if we talk about trading then we should only take risks which we can handle, the only way out of risk management for me is by using stop loss, taking optimal amount of leverage.
If you want to become successful in this market you need to deal properly with the risks. Proper risk management can ensure you a good amount of profit.
Risk management in forex enables you to implement a set of rules and measures to ensure any negative impact of a forex trade is manageable.
Do you guys belive in the higher the risk the bigger the profit? After having 4 years of trading in forex in my bag, my leg still shakes everytime I thought of setting 3-4% risk on the line. Although I believe i have a solid strategy to maintain my loss in control, even then… risking big amount, especially me being a prop trader, is something I try to avoid.
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Higher risk is associated with a greater possibility of return. I have control over my emotions while trading forex due to years of practice. And you can also achieve the same with time.
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In my opinion risk and profit are correlated.
yes you can use the volume to 0.01 for example on a standard lot or if you want to go down in the calculation volume, if you use a mini lot then you break it in 10 x less than a standard lot in the volume of 0.01, make sure you have a good broker that you can change the lot yourself in your trading platform. if you want to test market quality use the micro lot is a good technique when testing the market trend
I can help you with that, just let me know if you’re having some trouble in account management.
may I know how much are your profits?
My risk management approach is around using the appropriate position size and avoiding overtrading.