@mighty one
that was a very thorough and informative post, thank you for sharing. Now i am starting to ponder my strategy
To have a safe trading, better create a effective plans for use to use on trading. And learn to manage everything. donât let bad emotions ruin your good feeling or plans here in forex. focus on your goal.
Hi
I suppose, that best way to use fix lot instead of MM. Anyway, maybe I just want to be sure about lot size etc⌠
Can anyone explain MightOneâs strategy for a dummy like me?
1405 days since anyone has replied to this topic, but i want to share my 2 cents on this.
This is what i do to protect my account and trade safely.
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Entry: Conservative - I risk getting a few pips less, by getting the confirmation that price is moving in my direction, i donât try to get ahead of the market
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Stop Loss: Conservative - Giving the trade enough breathing room, and searching for a confluence of S/R and placing the SL above/bellow that level. Even if the Stop Loss is too wide, which means iâll have to cut down on my lot size. I would rather have a smaller win, than a regretful loss that could have been prevented by placing a conservative stop loss. Few things will bring me down emotionally then being stopped out and immediately after that the price starts going in the direction where i wanted it to go.
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Target: Conservative - I go for 80% of the full projection, sometimes even less
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Lot Size: Mediocre - I risk a fixed 3%, this means no trade will make or break my account
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Setups: Ultra Conservative - I try to be as picky as i can be when it comes to choosing is setups, if itâs not there, i am not forcing it, i would rather go a week or 2 without opening a position, than forcing one just to be involved in a trade.
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Time Frame: Longer (Slow and Conservative) - From 4H and above, anything less than that is considered a bit risky for me.
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I risk no more than 2% of the account per trade. I never risk more than 10% in any open trades.
Why? Because I know my strategy, I have my trading plan and I trade my plan.
I monitor the price action of HA bars and adjust the SL to the last high - the markets take me out.
I wait for the HA price bars to show signs of reversal then get out.
Finally, if my gut instinct says dontât trade, I donât. But I do take the trade on Demo just to see the results and if my gut was right!
AJ
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Well for me I like to follow the tested and true path and whatâs most taught is to use 1-2% of account balance per trade and thatâs what I do.
It wasnât easy to do I must admit because I had a small capital to work with. Most small capital traders canât really follow that rule. [Removed for Forums policy violation]
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There is no way to trade safely every transaction in trade has risk involved in it, depending on the volatility of market. To be fearless and confident about your trade decision is one of the mental way to trade safely.
My safety rules are 2% risk per trade and only enter trades where there is 2:1 R:R ratio
I do exactly as you said. I never risk more than 10% of my account. I neeed to be sure that if I lose it all I will still be able to stand. Either way I will risk more in the future once I know my way around. We need skills and that is what i am still perfecting, once I am skilled enough I can take those high risks.
I still dont have that much trust in my trading system, the resiults have not always been pleasing. For now I risk less. I will risk more once I know which trading system works best for me. It is better to play it safe for now. We cant put all or money in one place and expect positive results all the time. At one time there will be a loss, I would rather make small loses.
It seems to me that the best option is that you determine for yourself what percentage of profit and loss is acceptable. I think that the first indicator allows me not to flirt and accurately determine when I can stop and rest, I do not need a large profit once, I am satisfied with a small but regular. The second indicator will help to avoid large losses, which can hurt the capital, usually I try to keep it within a few percent.
The main thing is that you do not use a large percentage of capital in a deal and learn how to distribute capital so that you can always secure yourself, the more capital you have, the easier it is, so do not drive yourself into one deal, the market gives so many opportunities.
thank you for the advice, investing in such currencies is really risky.
Trading safely depends on the system of trading you are using. It is safer to use majority trading system than minority system. You should dwell much in the system that you have worked with for quite some time and have developed trust in them. Do not use systems that you doubt.
First of all, we must start from the premise that investment in the Foreign Exchange Market (or Forex), due to its high volatility and leverage, is a high-risk investment, which increases the possibility of both profit and loss.
For more security, choose a broker and investigate that they are licensed, you can also choose a Trader.
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Have a sound risk management strategy in place if you want to trade safely. choice of a good broker is equally important.
If you want to trade safely, then take care of following things like solid trading plan, no emotional trading and do not risk more than you canât afford to lose.
Broker is the main factor i look for while trading. Itâs important to be with a right broker.
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Be sure that your trading practically and not emotionally. Also, be sure of diversifying your trades. Putting all funds at one place brings greater risk.