Hi there! Am called Cajetan from Cameroon. Got this link online and I have been learning to trade since the past nine months. Will really like to grow in this business thanks to biggies in the field
3 Likes
Hi Cajetan
Do you need help with Risk management?
Babypips is a great site for Forex education.
1 Like
Hi Cajetan. Welcome to the fporex trading community. I suppose you need advise on risk management, and you are at the right place. First, ansure you trade on demo before using a real account. To manage your risks, trade using stop loss and don’t take more levararge than you can afford.
5 Likes
You are welcome to the market, you should join the babypips school if you have not done so. It’s a good place to learn more about the market.
1 Like
for sure … great place to learn!
great place to learn!
For my most important is risk management, is the first key to success on forex.
2 Likes
Sure I agree, everything can go right with your trades and all, but if you don’t have the proper risk management you might lose it all.
2 Likes
Yes, but I have tool for risk management.
What tool is it, it might be useful for others if you don’t mind mentioning it?
Risk Reward Ratio MT4.ex4 (158.0 KB)
Risk Reward Ratio MT5.ex5 (201.8 KB)
Risk Reward Ratio Manual.pdf (73.1 KB)
In the attachment is version for MT4/MT5
The file ex4 or ex5 should be added to the Experts tab and activated AutoTrading in MT4/MT5. Other file is pdf with manual.
2 Likes
It is very important to manage your risks as a trader, whether you are simply starting or you are established. One thing that I can advise you is that you should never trade without a stop loss. It is a very risky business, so never risk more than you can afford to lose
Pls shear I’m interested
Cajetan, how do you really go about that ? What to manage in your case ? Which risk ? Still let us know. You already trade for like nine month where exactly with which broker and what are the results with your case ? Let us know all that and be ready for critic;)
what different between money and risk management ?
Hello Cajetan,
It’s a great thing you asked this question on this forum.
Here are some tips that would help you better manage your risks:
·
Only invest
money you don’t need
·
Think about
your risk tolerance
·
Set your
risk/reward ratio to a minimum of 1:3
·
Control your
risk for each trade
·
Understand
and control leverage
·
Take currency
correlations into consideration.
1 Like
You can have the best Forex trading system but without a solid forex risk management plan,you could lose everything. So,following points can be taken into account :
1. While trading reduced lot size is a good thing because opening multiple lots with currency pairs can be confusing.
2. Knowing when to cut your losses on trades is an effective risk control method. This can be done with a ‘Hard stop’ where you use trading platform technology to lock in a stop loss at a certain level.
3. Also,limiting risk ensures that one shall be able to stay in the game at least and continue to trade even when things don’t go accordingly.
Forex trading is not a get rich quick scheme. Becoming a successful trader takes time and patience. Forex markets are highly volatile and unpredictable . These factors make the markets risky to trade . So one can manage risk in the following ways:
• Hedging is a great strategy that allows one to reduce the risks from fluctuations in prices.
• New traders must try to keep the lot size small. They will limit the risk of losses.
• Limit the use of leverage.
• Use stop losses to cut down your level of losses.
1 Like
Forex comes with a good amount of risk, so risk management is a prerequisite to earn from forex. To manage my risk, I always try to keep the lot sizes in a manageable limit. Second, I trade with trailing stop loss in most orders. That helps a lot!
With the change in exchange rates, Forex trade risk occurs. Risk is inevitable which no trader can eliminate so in order to minimize the risk it is better to apply some strategies and understand the risk tolerance like how much risk are you willing to take? What are your investment goals? Your knowledge? etc.