Hello, can anyone please help me with a good risk management system. I am right 90% of the time where the market might go next however, i realized that many time, the market come hit my support and then go where i said it will go next. I don’t risk more than 2% of my account per trade. Any idea? Thanks
Wait for the market to hit your support, wait for a signal it is reversing, then enter. That way your stop will always be very small.
If you trade smaller lots you can have a wider stop loss for the same monetary risk
I think if your prediction is 90% accurate, then you could probably do well without using stop loss. My understanding here is if you hadn’t been using stop loss, your profitability ratio would be 90%, but since you use stop loss, most of the time it is triggered prematurely only for the trade to reverse and move towards your predicted target. the alternative would be to increase the stop loss slightly perhaps 3% risk and observe what happens for a couple of trades.
Make a combination of the 3 advice’s above…
Normal the R:R => 1 if risk = 10 pips reward = 20 pips
but if you are 90% of the times on the winning side your Risk can be 50 pips and you reward 10 pips and you are still making money: 9 winners = 90 pips 1 looser = -50 pips Total +40 pips
Adjust lot-size so that 50 pips = 2% and you still have the same risk in money (adv 2)
(Adv 1) Have patient and wait market hit your support then enter with small SL Everything smaller then
50 pips in this example will increase your profit But not be greedy or your SL will be hit 90% of the time
adv 3 If you are winning 90% of your trades, that is not the same as being right 90%, you can consider to increase your risk. But not increasing the risk on your account; only take extra risk from your profits.
Plz tell me how I can be right 90% of the time because I am wrong 90% of the time.
Fantastic insight TC Holland, in deed you can always play around with your stop loss and RR depending on your trading success rate. This also gives you an opportunity to increase the window for profitability while maintaining the same level of risk.
Thank you very much. I did few trade this week but increasing my stop loss by 4% and i won all my trade. My stop used to be tie to the support or resistance level. And i am working on it.
I used to trade without stop loss however since that CHF got me back in January lol, i can’t mess with stop loss anymore. Risk management is the key to forex trading.
Thank you again.
we can control our lose with market. it will keep money in our account. when we still have money in account. we can gain our lose money.i was lose all money in account when i didn’t set stop loss.
Great to hear that you have finally realized the importance of using stop loss, not in a manner that anyone would have liked to, but it happens. Sometimes it’s got to take a huge beating in order to rethink our strategy, but the positive part is that you have now experienced the other side of the market. It is not always fancy. Now the best think will be to apply your stop loss levels in your trading strategy, which I think you already have. So good luck and hope next time you are the one who smiles when the CHF shakes again.
With the help of good market research and proper money management one can really make huge earnings in forex.
Plan the risk : reward ratio as per your risk caliber and trading skills. But never risk the money without using stop loss because that can be the most dangerous killer for your trading account. A Risk : Reward ratio of 1:2 and higher is always beneficial.
stop loss help me protect money in my account. i want keep money in my account. i don’t trade without stop loss. i scare i can lose all money in account with stop out.
how can someone be right 90% of the time , if there is any specific strategy please i would like to know about it
Typically by using systems/methods which regularly make small profits but incur occasional disproportionately huge, disastrous losses. Such systems, unfortunately, tend to be both easy to research/discover and easy to promote/publicise because they appeal to very inexperienced, unsuccessful traders who mistakenly imagine that “win-rates” are the most important aspect of system selection.
These are generally systems to avoid, José - not systems to emulate.
If you read an introductory trading book such as Van K Tharp’s [I]Trade Your Way to Financial Freedom[/I] or Tushar S. Chande’s [I]Beyond Technical Analysis[/I] (both very strongly recommended), you’ll find plenty of detailed explanations (with examples) of why it’s so much easier and more plausible for people - especially beginning/inexperienced traders - to make profits from systems/methods with much [U]lower[/U] win-rates than higher ones, and why seeking out systems with very high win-rates usually ends up being such a big mistake.
Personally I use SL to avoid risk,My internet connection can dwindle,one can have unexpected freezes with your Laptop.It all comes down to your money management.All you willing to risk all of your account?
Using stop loss is recommended if you want to make sure you never lose more than you are willing to. In some cases (for example in scalping) you can leave stop loss empty, but then you are there to close the order manually. In all other cases it’s best that you have a stop loss since as some traders said above - you can have a weak internet connection or you just might be emotionally engaged with your trade and delay closing the order until your losses have overextended.
I always make sure that i am using Stop losses in my trades because that allows me to get out of a bad trade over which i have no control at all 
Hi Lexys,
On your advice I red Tharps book “Trade your way to financial freedom” and I can say it is a good book and I have to look for the other book you recommend.
I wonder what kind of system do you trade?
If you look at the start of this thread you see that the 90% right is not exactly his problem because he wasn’t making money. This was caused by his SL and a view answers helped him out of this problem
The latest answers in this thread just react just on the title: Yes you need a SL But how it have to look like??? That was the question. I dont know or the 90% was serious because if so I would like to know how to do it Because to know 90% of the time in what direction the market is moving will make trading a lot easier.
Thanks for all your input, I appreciate it…
I trade a few little systems, each slightly similar and traded from the same charts with the same position-sizing, which I’ve cobbled together over the years after being influenced by the price action observations and principles of Joe Ross, Bob Volman, Al Brooks and others. Between them they produce about 70 short trades per month, mostly on Cable and the Euro - it would be more if I worked harder. I also have one other fixed-time, breakout-based system which is nearly “set and forget” and trades about 25-30 times per month, also on Cable and the Euro.