risk/ strategy

[italianlion]

can someone briefly explain risk in the fx market ,and how to manage it . i have an idea but not quite sure I'm in the rite trend sometimes.. however i do have a stop loss not to far possibly 10-15 pips , trading on small account of 3k$.. buying lots 0.03 to test the water a little bit i look at the market as a real estate market..i wait for a good position and il take it however the market is mysterious ,and does me justice today and not tommoro the next day but not the next.. just a minor strategy i came up with last night .. do you guys have any specific tips ?? thanks i appreciate it..

 

[NVP]

My tip is spend a year researching all the markets , trading strategies and trying to understand how successful traders make,money

Specialise as,quickly possible in your research so you can really get near what you want to do

Don't waste any money trading until,you have more of an idea dude......until then you are just gambling

N

 

[kxforexmart]

I feel that we have to use the proper leverage ratio and good Lot size .My trading strategy is pretty simple because i use Lot size and capital in such a way where i get 1000 pips back up and yes i use perfect and tight stop loss also so that trading account get protected easily.

 

[tomorton]

First off italianlion, are you clear its the TA that decides how many pips away from entry your stop is, not your money management?

Your money management decides how much per pip you go in so that if your stop is hit so your account is adequately protected. (If the size per trade is then too heavy, you move on to another pair or await a better opportunity on the selected pair.)

You can't just randomly pick a number of pips and say I'm going to risk 15 pips on this trade or 30 on that trade, if this has no relation to what the market is doing, as shown on the chart.

 

[NVP]

First off italianlion, are you clear its the TA that decides how many pips away from entry your stop is, not your money management?

Your money management decides how much per pip you go in so that if your stop is hit so your account is adequately protected. (If the size per trade is then too heavy, you move on to another pair or await a better opportunity on the selected pair.)

You can't just randomly pick a number of pips and say I'm going to risk 15 pips on this trade or 30 on that trade, if this has no relation to what the market is doing, as shown on the chart.

Toms 100% right ............thats why I said research and learn to trade properly

good trading practices tells you to let the market tell you where to set stop losses.....and then allocate the % stakes used according to that ........

don't let the tail wag the dog .......:smart:

n

 

[MK_Tom]

Explain risk in forex? There's risk in every trade. From what I understand (and I'm far less experienced than people like tomorton) the trick to profitability is minimising your losses. It's big losses that kill traders - people staying in a failed trade in the hope it turns profitable again. If your intended set-up isn't working, don't yell ''go up go up'' and curse the market for disobeying you - get out with a small loss. Better that than risk a large one. A small one is easily recovered with small wins. A large one isn't.

 

[ijak]

can someone briefly explain risk in the fx market ,and how to manage it . i have an idea but not quite sure I'm in the rite trend sometimes.. however i do have a stop loss not to far possibly 10-15 pips , trading on small account of 3k$.. buying lots 0.03 to test the water a little bit i look at the market as a real estate market..i wait for a good position and il take it however the market is mysterious ,and does me justice today and not tommoro the next day but not the next.. just a minor strategy i came up with last night .. do you guys have any specific tips ?? thanks i appreciate it..

my risk strategy is depend on %, how much in % i will risk, in one trade cycle
for example with your Equity , $3k, i will risk around 0.5% - 1% per cycle.
Per cycle means , even i open 5 trade, my risk in total always around 0.5%-1%
and i do not put any specific pips, because i trade based on Candle. so sometimes i can put 20pips stop if confirmation cadle are small, and i can put 100 pips stop, if confirmation candle are big. depend on situation

 

[progix]

Successful traders do focus on building an appropriate strategy that helps them foresee and manage the risks associated with their investments.

 

[SmartTrader17]

My tip is spend a year researching all the markets , trading strategies and trying to understand how successful traders make,money

Specialise as,quickly possible in your research so you can really get near what you want to do

Don't waste any money trading until,you have more of an idea dude......until then you are just gambling

N

Fully agree with this. If you are trying to get into the market to try things out, demo accounts are your best friends! Nothing wrong with seeing what works and what doesn't, just stay patient!

 

[SmartGeek]

Yeah, they design the strategies in such a way that it yields the maximum outcome and if it doesn't they modifies them and sometimes even change them.