How do you go about this?
This is a very tricky question. The reason is in some strategies you are not looking to minimise losses as the losses are part of the probabilities playing out. Simply, the answer can only be found by backtesting your results. You hear a lot online by ‘mentors’ that if you get 1:2, 1:3 risk reward you’ll be fine. That’s only if you can achieve this. The only way to know this, is take a sample of trades, start with 30. This is per pair. Then backtest and see if you had left the position open looking for more risk reward how many wouldve hit target and how many would have hit your SL.
It’s easy to minimise losses, you just keep moving stop to breakeven when price goes up by a few pips. But you could be doing yourself more harm as many of those trades might have gone against you and then hit TP.
You must open a demo account and trial a simple strategy. You will then be free to make changes to entry decisions, entry order types, stop-loss placing, stop-loss types, TP placing etc. without cost. Do not start trading with real money when you are consistently profitable.
There are so many way to do that. You will need to take into consideration of risk and money management for maximizing profit while minimizing the losses. You will have to strategize that with your demo account by placing stop loss, take profit, etc
Sounds easier than it is done. You just need to try and create different strategy in that
Hi, I using many strategies with low correlation between them. Regards Greg
I think your knowledge and experience will help you to minimize your risks and maximize your profits. So gather knowledge about forex as much as you can.
Focus on learning how and why price moves, and you will make money. Focus on how to make money, and you will go nowhere.
It’s as simple as that.
Typical risk management and muted excitement.
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zianfx
This is an important question.
I have mentioned this on another thread - IGIndex did a blind survey of all their clients and found that the only ONE stat that separated winners from losers was-
winning traders let winning trades run and cut losses quickly
losing traders did the opposite cutting winners an chasing losses
Risk management is so important.
I day trade and scalp, I am not suggesting that you day trade and scalp, you have to find your own niche. Learn about the markets, the candles and practice.
For what it’s worth and this is only my personal view. I like to move my S/L to break even as soon as a trade goes to 1:1 reward/risk - it is then a free bet, a winner to nothing. Then I manage trade accordingly trailing the S/L. I find it psychologically beneficial, when moving S/L to break even, to add a pip or two,.to make the trade in the green. I never set a T/P target as a good little trend can run.
Obviously, different strategies may benefit with different tactics, the tactics I mention, work well for me.
Risk management is so important though, which ever way you handle it.
Let your winners run and cut your losses. And practice - practice.
Just don’t let you lose more than 5% of your capital. And of course you need to study the market in detail. To become a true professional, who is well aware of the events and makes competent, informed decisions as often as possible…
Striving for big profits is not the most important thing in the market. It seems to me that stability, ability to cope with difficulties, etc. are much more important. But I am not going to sly - of course, money is also important. But I really want to learn how to earn it in a stable way. Not to earn a lot, but only once.
