risk management

Merk Porter

Junior member
44 0
Many traders are taking good interest in the field of currency exchanges since currencies as securities is more stable than other securities like equity or bond. Yet, the instability of various domestic economies is making forex as a challenging field. Thereby a trader will need to continue his risk management approach. And derivative market has been introduced as a risk management approach to help the traders to keep their wealth position intact against the unwanted price fluctuations of currencies.
 

hatemypips

Established member
538 39
Many traders are taking good interest in the field of currency exchanges since currencies as securities is more stable than other securities like equity or bond. Yet, the instability of various domestic economies is making forex as a challenging field. Thereby a trader will need to continue his risk management approach. And derivative market has been introduced as a risk management approach to help the traders to keep their wealth position intact against the unwanted price fluctuations of currencies.
Do you know any hedging strategies which help to mitigate risk like options hedging or something else?
 

Xevield

Junior member
22 2
Trading is a game of taking risks and managing them properly in order to convert your losses into profit. A good manager is always a good trader. I am following this quote from the start of my career and I am a good manager. What about you people?
 
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J_C_Anderson

Active member
128 22
The main risk management advices are:
- Set daily max.loss limit and split in among all your trades,
- Always stop trading after you hit the limit
- Have a break after loosing day
- Never risk more you can afford to loose.
 

scarlet jones

Junior member
26 5
I agree , plus you must risk that much money which you don’t want. Risking more than you can afford , can cost you much more times than you thought. It can even make you bankrupt. So, determine your risk tolerance ,set a risk- reward ratio and follow strict risk management practices
 
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Nuadarne

Member
61 5
Risk management is the basis of profitable trading. I would divide this direction into two main parts for myself. If you use short-term trading, you need to calculate what percentage you can afford to buy a particular trade. So that you can always get out of the situation if it is unsuccessful. The same approach works when you buy several trades at once. When it comes to investing in the stock exchange, I wouldn't buy stocks of just one company. It is better to remember the diversification of risks and invest in several areas. So that one investment could cover the drawdown in another one by profitability. As in the English proverb "Don't put all your eggs in one basket".
 

hatemypips

Established member
538 39
Risk management is the basis of profitable trading. I would divide this direction into two main parts for myself. If you use short-term trading, you need to calculate what percentage you can afford to buy a particular trade. So that you can always get out of the situation if it is unsuccessful. The same approach works when you buy several trades at once. When it comes to investing in the stock exchange, I wouldn't buy stocks of just one company. It is better to remember the diversification of risks and invest in several areas. So that one investment could cover the drawdown in another one by profitability. As in the English proverb "Don't put all your eggs in one basket".
Can you share with us good examples of prudent risk or money management systems, possibly optimisation methods? Do you have any?
 
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Akinozragore

Member
95 6
Certain risks await a person in any type of business, and trading is certainly not an exception. It is necessary to calculate every step of the way to stay in a stable position and not to worry about mistakes that have hurt the capital. It takes a lot of effort and time, especially since the market is very dynamic and every day prepares surprises for us, but not always pleasant. But I can say for sure that if you learn to control the situation and always be able to make a decision, you will definitely achieve high results, which will ensure a good income and a confident position in the market. This has been tested in practice by thousands of traders who managed to overcome all the barriers and became successful.
 

AdamCantor

Member
63 6
I agree , plus you must risk that much money which you don’t want. Risking more than you can afford , can cost you much more times than you thought. It can even make you bankrupt. So, determine your risk tolerance ,set a risk- reward ratio and follow strict risk management practices
well said ^
 

hatemypips

Established member
538 39
risk management is key in fx trading. plenty of youtube tutorials for guides, thats what i used
Do you know any of them which are worth to spend our time? I watched a lot but most of all try to explain basic things it's difficult to fund something advanced.
 

danpadcas

Junior member
16 0
Risk management is the bread and butter of trading. If it's all over the place, you won't last long in this business. For a lower risk and more reliable signals a trader would be better off just sticking to the higher TF such as H4 and Daily.
 

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