Risk and money management are inherent tools within the strategy. I guess there’s always the risk that a trader with a good strategy will break their own rules but that’s like saying flying in an airliner is risky because the pilot might decide to try landing without the wheels down for a change.
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If traders want to be successful in forex trading, they must have a positive mindset and be willing to take risks.
Oh I agree. A strategy can’t be good if the risk and money management isn’t fundamentally sound. I think this links back to your original point about risk being misunderstood in forex. Nearly all risks can be mitigated in some capacity.
The good thing is that you can predict the risks better with the proper understanding of market flow. Anyway, even though you are a good trader but are not familiar with the financial states, you cannot evaluate the misfeasance claims risk in times of crises like COVID-19. So in these kinds of situations is better to approach a professional insolvency company.
yes agree with you , the success of any kind of trading strategies depends on its money management , when there is powerful money management then good result from strategies of course will come.
Risk is essential in every type of business that involves making money. Risk is involved either high or low.
In the forex market, brokers like Admiral markets or FP Markets offer guidance trading with a low amount of risk with small cash involved.
There are only 3 trading risks in forex - these are -
- your consistently profitable strategy will stop working because market conditions radically change
- you will fail to execute your own consistently profitable strategy
- an event occurs which eliminates your account - drastic over-exposure to an unpredictable market event, fraud, legal abolition of your trading access etc.
You’re definitely correct. Yet, people are more hesitant to risk money here than elsewhere. I’m just now starting a business, invested hundreds of dollars into material, spent time making products, spent money to pay to use a selling platform, and may not make a dime from it. It takes money to make money, whether you’re a trader, businessman, etc.
Don’t worry togr , he that bitter and twisted just over 1 in 8 of his posts have been like so he liked himself with another profile poor man
There is always a risk, but the question is how can you minimise it. It’s also not about winning, it is about controlling risk. A good risk management method will help you minimise your risk. To incorporate that, traders should design strict trading rules for themselves.
And a lot of traders ignore the risk part and only care about making the profits. A fellow trader once said: “Forex is about risk management, not winning.” As long as you take calculated risks and methods to minimise risks, you will automatically make profits.
Sound risk management is key in Forex .
Even with a high RR strategy you need proper money management to offset any variance you may experience when Markets are volatile or ranging