Risk is essential in any business

Risk management and money management is required in the Forex Trading, you need to gain them both, and you need to develop in the Forex Trading and it is absolutely essential in here for the survival in the fluctuating in the Forex Market.

Its common message, have you any advance level knowledge about risk management and what you thinking what actually risk management in Forex ? It’s similar as like others business?

You are right we have to manage risk . Risk is every where specially in financial business its ratio is high , Business like forex need a lot of practice to understand risk reward system. Until we not take risk can not get profit. Decide right what risk is better for you .If you are able to deal with this risk you can reduce its bad effects.

There are lots of risks involved in the Forex Market, but this risks could be turned into the rewards, but that will need to have a proper amount of practice. Thus I believe that the risks are essential for any business as without risks, there wouldn’t be any rewards in it.

Reduce your trading lots size, it will help you to avoid huge losses in your trading!

Feared traders should reduce risk using small lots until they are not successful with this practice. Risk is essential , it is up to any trader how much and how he uses it. I personally avoid high risks and volatile markets due to difficulties I face in risk management.

Every faction in this trading place contains always huge risk , so no way to avoid it in spite of having most powerful trading knowledge. But if we more disciplined and have a conscious about risk management of course we can be profitable from this risky volatile platform.

Knowledge and RM is totally different. Knowledge is the experience by the real trading or something. But a risk management is a great analysis to calculate the potential risk. for avoiding risk we have to pass a long time in demo where we can see how it works. before live trading I used my all trading strategies in demo account to see their performance. And this technique always supports me to avoid risk when trading practically in live.

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Thank you peter and wara for nice message. We can’t avoid risk, because risk is everywhere in this market. But it is possible to minimize the risk level by means of proper trading plan. And for that we have to be experienced and knowledgeable.

Thank you for your nice comment. I used demo account particularly to see the High leverage performance, this approach discourage me not to take high leverage when trading practically, because high leverage always contains high risk and can vanish equity within very short time.

Welcome. Leverage can be profitable if there is exact trading plan with great risk management approach. Otherwise you can fall a great trouble in particularly when market moves at random. So, before using leverage learn how to manage risk

I have seen so many traders in particularly newcomers always consider leverage as risky elements. But I don’t think so. if someone loses by using leverage of course there was non-sense planning with lacking of money management.

Hadden, if you think leverage doesn’t contain at any risk please trade with 1:1000 ratio and see how it works. Of course good trading plan supports to avoid unfortunate risk but this is not possible at all to reduce risk completely when using leverage in live account.

sorry. You lost my point. Please go through the message I wrote. i emphasis on good trading plan before using leverage that can make you profitable in spite of risky situation.

I think there is no one in Forex trading who can avoid risk when using leverage in spite of having good plan.

Yes I agree. No chance to avoid risk completely. But by having RM sometimes leverage can bring profit but of course there must be a good trading plan also.

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Risk management is essential in every business. Because you can’t maintain risk, but you can never make a profit. Risk maintenance can cover the loss in trading.

Agreed! Risk management hold an important place, not just her in forex but otherwise too. But sadly, not all traders take this part seriously.

Yes, you are right most of the traders ignore risk management. One should understand that less risk can only increase profits.