asiaforexmentor Posted October 24, 2011 Share Posted October 24, 2011 Forex Risk Management – Whats your Risk % per trade? Forex Risk Management FOREX RISK MANAGEMENT Whats your risk % per trade? Or should i say, what’s your risk appetite? To be a successful forex trader. You will need to have a proper money management system. It starts with identifying what level of risk % per trade will you risk. As a guide, a safe and good risk percentage will be from 1% – 3%. Anything higher than 3% will be relatively risky. Why is this so. If you understand, the forex market can do anything. Even if you are sure this is the MOST perfect setup. It MAY NOT end up the way you expected it to be. Why? Forex Risk Management – Whats your Risk % per trade? Forex Risk Management First, you must understand that anything can happen in the forex market. Just for example, even if it is the most perfect setup. If a major institution pumps in a large sum of money at that period oftime. It can change the direction of the market for a short time frame. And when the retail investors see the market moving in the direction stipulated by the major institution, they will then follow suit and enter the same way. WHICH causes the movements in the market. But of course, this doesn’t happen always. What i’m saying is, anything can happen in the forex market. So even if you are the best forex trader in the world. You will not have a 100% winning rate as well. You will still lose as the market can do anything. Which is why, it is not wise to have a high risk per trade. Forex Risk Management – For example, if a trader risk 10% per trade. And a series of unfortunate events happen to him, (maybe it’s a distraction, maybe there’s an earthquake etc) As a result, he made a series of 5 losing trades. He would have wipe of 50% +- of his trading capital because he risked 10% per trade. And with just 50% left, it will be hard for him to make back his loss. So if you see what i meant. Forex Risk Management – For example, if you risk 2% per trade. With a series of 5 losing trades. You would only lose 10%+- of your capital. Which is not to bad. With a good trading system, we can easily make back the money loss. Forex Risk Management – Whats your Risk % per trade? Forex Risk Management But here comes the big question. What is your risk appetite? You see, there is absolutely no point into asking you to risk 1% per trade. Forex Risk Management – Eg. Capital $5000 Risk of 1% = $50 per trade. If at the back of your mind, you do feel that $50 per trade is too little. Then you will most likely find and trade even more trades that you usually should – in order to make more money. Right? Therefore, the correct way to set your risk % per trade varies with different individuals. You must ask yourself. Forex Risk Management – Eg. Will you be satisfied with $50 per trade or $100 per trade or $150 per trade based on the capital of $5000 Once you got an answer, you got your risk percentage. Forex Risk Management – Whats your Risk % per trade? Forex Risk Management Remember, 1) Your risk percentage cannot be too high. As mention a good gauge is 1% – 3%. 2) Your risk percentage must meet your risk appetite. There is no point in risking 1% if you find the amount too little and does not satisfy your hunger. So there you go. Once you have set and decided on your risk % per trade. STICK FIRMLY TO IT! For example, in a series of trades. You cannot have eg. 1% on 5 trades, then 3% on 5 trades etc. Because if you play it this way, and what if you make money on the 5 trades with 1% risked, and lose money on the 5 trades with 3% risked. (which usually happens!) YOU WILL LOSE MONEY! Therefore, stick firmly to the risk percentage per trade which you have set. Eg. If you set 2% risk per trade. From now on, every trade you take – You will risk 2% per trade. NOTHING MORE, NOTHING LESS. This way, you will be consistent and you are on the right track to success. This is part 1 of the 2 series of Forex Risk Management. Stay tuned for the 2nd part. Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies | system that i personally use to be consistently profitable. See you on the other side my friend, Asia Forex Mentor Ezekiel Chew Asia #1 Forex Mentor www.asiaforexmentor.com 7 Quote Link to comment Share on other sites More sharing options...
mohammadbadr Posted November 7, 2011 Share Posted November 7, 2011 For sure, the best trading hours are those where there is a good liquidity in the market, which is usually during the European session and American session, but be careful of the breaking news also, they may shift the market totally in no time, and turn your profits to losses. Quote Link to comment Share on other sites More sharing options...
budado Posted November 20, 2011 Share Posted November 20, 2011 I really don't understand this thread. the title of this thread is. "what are the best forex trading hours?" So when I open this thread I assume that the topic is all about trading hours right? But inside is about forex risk management and has nothing to do with forex trading hours. Totally confuse with this one. Quote Link to comment Share on other sites More sharing options...
yogeshwartyagi Posted December 2, 2011 Share Posted December 2, 2011 I really don't understand this thread. the title of this thread is. "what are the best forex trading hours?" So when I open this thread I assume that the topic is all about trading hours right? But inside is about forex risk management and has nothing to do with forex trading hours. Totally confuse with this one. Well in my view thread creator wants to talk about those hours when we get good chance to make profit, for me those hours when all major markets are open are best trading hours as we see good movement in prices and that is necessary if we want to make profit. Quote Link to comment Share on other sites More sharing options...
senger Posted December 6, 2011 Share Posted December 6, 2011 The best times of the trading day is from my point of view of 5:21 GMT These times are precisely where the European and U.S. market open Quote Link to comment Share on other sites More sharing options...
budado Posted January 5, 2012 Share Posted January 5, 2012 Well in my view thread creator wants to talk about those hours when we get good chance to make profit, for me those hours when all major markets are open are best trading hours as we see good movement in prices and that is necessary if we want to make profit. Have you read the creator of this thread? Can you quote the paragraph or even the sentence that talk about hours of major market open? Because theirs no paragraph or even a sentence that talk about the time table or what ever that related to time. So its shows that this thread title has nothing to do with its contains. Quote Link to comment Share on other sites More sharing options...
zdaina Posted January 8, 2012 Share Posted January 8, 2012 hello, i think a good hour for trade is at 4:00 in asian session , because the market move slowly and we can control the position very fast. but n the middle of te day the market look very unstable . Quote Link to comment Share on other sites More sharing options...
riddick09 Posted January 8, 2012 Share Posted January 8, 2012 Best forex hours in thread title, risk management in the content. Kinda confusing which should i will discussed. Well good thing for me that im able to know the forex hours in my timezone. Mostly, EUR and USD will be active in 9:00PM in my timezone which is +8 GMT. Quote Link to comment Share on other sites More sharing options...
ermaniso2011 Posted January 22, 2012 Share Posted January 22, 2012 l think the title and content is different,but it is still related to forex so no problem :)the risk managment is one of the most important knowledge that every trader must have.what l have discovered latley is it is exctly where the winners and loosers differs.risk managment gives a trader total control on his investment. Quote Link to comment Share on other sites More sharing options...
pinoycity Posted January 24, 2012 Share Posted January 24, 2012 Yeah, the title is not what is described in the opening post. As to the right time, I think, there is no really good time for trading. For me, as long as you can see a trend, any time is good. Quote Link to comment Share on other sites More sharing options...
stezz Posted February 12, 2012 Share Posted February 12, 2012 thanks a lot since i newbie in forex thing this thread is very useful for the people like me Quote Link to comment Share on other sites More sharing options...
flybiz08 Posted March 29, 2012 Share Posted March 29, 2012 I do not trade more than 1% of my trading account for any reason no matter how strong the signal strength. This is because I follow a very strict money management technique and this has contributed to my success in forex trading over the years. Quote Link to comment Share on other sites More sharing options...
famouspublisher Posted June 3, 2012 Share Posted June 3, 2012 Local time to business the forex marketplaces is between 8:00 GMT and 16:00 GMT. These are generally the time of the London, uk industry with the last 5 time being in overlap with the US industry. This is time when the most investors and greatest lenders are in the marketplaces making their investments. It is widely considered the most successful a chance to business. Quote Link to comment Share on other sites More sharing options...
Tariq777 Posted June 12, 2012 Share Posted June 12, 2012 The best forex trading hours are 8 GMT - 16 GMT, they are the best in my view Quote Link to comment Share on other sites More sharing options...
rizal83 Posted October 16, 2012 Share Posted October 16, 2012 for the best time in the actual trading depends on each country because each country has different time and for me personally I prefer to trade with the differing time because it will make it easier for me to analyze price movements Quote Link to comment Share on other sites More sharing options...
adnan007 Posted October 26, 2012 Share Posted October 26, 2012 For me, the best trading time is when the market is trending. I have noticed that the market start to trend mostly after the European session or the US session gets open and thus I mostly trade during those time and get some easy profits out of my positions successfully. Quote Link to comment Share on other sites More sharing options...
budado Posted November 2, 2012 Share Posted November 2, 2012 I really enjoy trading 24/5 right now. I hope I can make good income in here. I just feel that its worth it for me to trade in demo first but I'm so eager to trade in real account that after two months I trade in real account and now I have 6 active accounts. That's why for me as long the market is open its always best time to trade. theirs so many pairs to trade and to choose. Quote Link to comment Share on other sites More sharing options...
standart Posted November 2, 2012 Share Posted November 2, 2012 the most active hours usually is during europe session and beginning of new york session. if traders search volatility, those time trading will be suitable for them. but for swing trader, usually their parameter is not an active hours, so all of trading time is good opportunity as far as their trading system said so. Quote Link to comment Share on other sites More sharing options...
asiaforexmentor Posted November 9, 2012 Author Share Posted November 9, 2012 A complete professional forex trading system that even newbies can apply instantly. Asia Forex Mentor forex course is now FREE! Quote Link to comment Share on other sites More sharing options...
rexway Posted November 10, 2012 Share Posted November 10, 2012 Yes this is true and real the forex market has its own trading session and I think that the right time to trade is for any trader to look into the forex pair which he wanted to trade and make sure that he trade and do more analysis on that pair through this means he will be able to know the right time to trade in the pair since all pair has their trading hours. Quote Link to comment Share on other sites More sharing options...
PROPENSITY100 Posted March 3, 2013 Share Posted March 3, 2013 Yes money management and risk control is essential to survive in Forex and make money in it for years to come. Without proper knowledge and experience Forex is highly risky and a trader can easily lose all his resources in it. Quote Link to comment Share on other sites More sharing options...
riddick09 Posted March 5, 2013 Share Posted March 5, 2013 Once we have settled our proper risk management then, we can easily pick the time we have for trading. I just don't think we need to literally have exact time but to have at least range or session time. So, we can have the major market sessions which mostly prefer those who overlap and then, monitor the market movements in that time. Quote Link to comment Share on other sites More sharing options...
acunmeswew Posted March 27, 2013 Share Posted March 27, 2013 For most forex traders, the best time of day to trade is the Asian trading session hours. European currency pairs such as EUR/USD show the best results. Quote Link to comment Share on other sites More sharing options...
savehouse Posted April 28, 2013 Share Posted April 28, 2013 well the best trading hours depend on one trading strategy and understanding of Forex market,i don't think one can set a time without understanding and having a trading plan that fit to the trading hour one might be thinking of trading.proper study into the market will help one understand and help one determine the best trading time Quote Link to comment Share on other sites More sharing options...
uncle gober Posted April 29, 2013 Share Posted April 29, 2013 well the best trading hours depend on one trading strategy and understanding of Forex market,i don't think one can set a time without understanding and having a trading plan that fit to the trading hour one might be thinking of trading.proper study into the market will help one understand and help one determine the best trading time Yep, for scalper, maybe Asian Market is the best. Maybe others think that opening or closing market is the best time for get into the markets. Everything depend on each traders. Quote Link to comment Share on other sites More sharing options...
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