Risk management resources

Beginner Questions
1

Where can I find good lessons or educational resources for risk management?

2

Reading every single book on FX, Stocks, & Futures is a start. Funny thing is “risk management,” can’t be taught… especially for someone who “has,” if you are one of the, “has not,” it may work… I’m hopeful you are one of us, and has not. If so, you may enter into the rabbit hole.

3

Mostly I risk 1% per trade with a daily maximum of 5% open trades. The larger the account size - I have a 3K account - the smaller the risk needed to make a reasonable profit.

And that’s why beginners with small accounts mostly blow their accounts as they overtrade, revenge trade, and gamble because the profits are minimal. FX trading is not a get rich quick business.

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4

https://www.babypips.com/learn/forex/undergraduate-senior#risk-management

I suggest you complete the full course.

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5

In addition to using stop loss orders, traders can employ several other risk management techniques. One such technique is position sizing, where traders adjust the size of their trades based on the level of risk they are willing to take on. Another technique is diversification, which involves spreading out investments across different markets and asset classes. Additionally, traders can use hedging strategies, such as buying or selling correlated assets, to mitigate their risk exposure.

6

There are many paid courses available online but you shouldn’t waste money so early rather you can watch video tutorials on YouTube.

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7

this calculation is very good and risk-free, but maintaining this minimum risk ratio at all times is really difficult and challenging.

8

what you think about risk management , there is any difference between money and risk management ?

10

Risk management comes in all shapes and sizes and every trader will handle risk differently. First I would suggest doing as many free online courses as you can on trading, and then do some more. Education is key here.

In my opinion, always trade a well thought out plan and stick to the plan. Risk 1% (maybe 2%) of your available funds per trade and always use a stop loss. Never, and this is a big NEVER trade someone else’s signals, that’s a one way ticket to losing your entire account balance.

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11

Numerous educational resources can be found online to learn about risk management, such as professional organizations, online courses, and educational websites. Notable options include the Global Association of Risk Professionals (GARP), Coursera, and Investopedia.

12

i know you’re trying to help, but with respect this would be a totally inappropriate resource for someone trying to learn forex trading!

i recommend the lessons in the Babypips free course

and a good beginners’ book on trading by Van Tharp or Michael Harris, after that

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13

Which will lead you into emotional trouble. I’ve been there, done it, and learnt that the FX market does not have golden sidewalks.

Aim to learn how to develop a ZEN mindset, as the ONLY control you have over what the market throws at you IS your risk exposure.

You will thank me one day.

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14

but i know so many educational resources are available in online but most of the are found useless . this is a true fact

15

what you think guys there is any difference between money and risk management ?

16

i distinguish between “risk management” (the basis of any trading plan, including position-sizes) and “trade management” (more individual, on a trade-by-trade basis, e.g. how and when you move the stop-loss)

18

It’s a broad subject and there isn’t one specific book, course or video that I would recommend.

However, I do recommend starting with these three books:

  • Dance With Chance: Making Luck Work For You by Spyros Makridakis, Robin Hogarth & Anil Gaba

  • The Black Swan by Nassim Nicholas Taleb

  • Mastering Value at Risk by Cormac Butler

These are not exactly ‘light reading’ but they are well worth the time and effort.

Hope this helps.

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19

In the case of a trading system:

• Risk management is loss management.
• Money management is profit management.

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20

Right. Will I continue to risk 0.5% per trade? Or will I get angry, revenge trade, and risk 10% to recoup my losses?

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21

There are loads of resources for you but I suggest you to use the Pipsology school!

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22

Yes, you have control over what risk you want to take as opposed to no control over what the market throws at you. That you have no control over yourself is a different matter.

Learn to accept emotional challenges by learning how to develop a ZEN mindset, which accepts what the market throws at you. So no more anger, revenge trade or overtrades.

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