Is there a way to eliminate risk fully?

[radex78]

No risk no gain, I think all traders are already familiar with this slogan in the forex trading business, it is impossible to eliminate the risk fully, risk is part of forex trading that is sometimes inevitable, we are only able to control the risk but can't control the market.

[Hudson]

Risk will always remain in foreign exchange, and as far as I know, if someone wants to remove the risk, they must also remove their opportunity to benefit.

Even choosing a broker is risky because there are several unregulated scam brokers, so choose old regulated brokers like ICM or FP Markets for better security.

[radex78]

Only trading in demo account will free without any risk losing real money. However forex trading is risky business, profit and loss is like as two edge in one coin that reverse each other. However if we gets bigger profit than loss hence still good performance.

[Ritesh.R]

Risk is always involved with this profession, and I believe that without risk, you cannot generate money from this business. However, if you follow the laws of this industry and use suitable stop-loss and take-profit levels, you may lower the intensity of risk.

[boltushkin]

SL and TP  are just tools to limit the risk and not to reduce it at all. If you want to eliminate the risk, the answer is pretty simple and straigthtforward, DON'T TRADE. Trade in forex means the risk, opening a position and close a position also included. We speculate on the market and not for investment.

[Harvey]

Risks cannot be completely eradicated, and they are not something that any trader can avoid. There is no way to completely eliminate the risks, which is why some traders use brokers like FP Markets.

Because they provide some of the best trading conditions, with spreads starting at 0.0 pips, a commission cost of $6 per round lot, and a faster execution time of 30 ms.

[nanamage]

You can reduce the risk by withdrawing regularly, because brokers will scam if they suddenly cannot withdraw funds, such as Forexmetal.

[boltushkin]

Eliminating risk entirely in trading, or any financial endeavor, is virtually impossible. Risk is inherent in all investments, and the financial markets are no exception. However, you can manage and minimize risk through various strategies, such as diversification, proper risk management techniques (like setting stop-loss orders), thorough research, and continuous learning. The goal is not to eliminate risk but to reduce it to a level that you are comfortable with and can handle within your trading plan.

[RodriJames12]

Risks in forex trading should have minimal risk, and then we will be able to trade with the maximum. In forex trading, the risks are so great and difficult to predict well that we need to minimise the risk by having good risk management.

[nanamage]

On 11/11/2012 at 11:36 PM, alam3636 said:

Every one say forex trading is risky, i am keen to hear if there is a way to eliminate the risk completely?

Forex trading is indeed considered risky because it involves the fluctuation of currency values. However, it's important to understand that there's no way to completely eliminate risk in trading. Risk is inherent to financial markets. You can manage and reduce risk through strategies like risk management, diversification, and proper analysis, but there's always some level of risk involved. It's essential to be aware of the risks and trade responsibly. And, more importantly, don't just pick any broker and fall into a scam broker. Always check lists of problematic or potentially scam brokers before making your choice. It's an important step to protect yourself in the trading forex. Here are examples of Unregulated Brokers or Brokerage firms that should be avoided. They are not recommended for trading due to their unlicensed operations : Kingston Trading , CryptoAllDay, TegasFx and there are many more of them.

[radex78]

Risk is part in forex trading that cannot be separated, so here impossible to eliminate the risk fully, however, we can control the risk by trading based money and risk management, here the popular feature that widely used among traders to manage the risk is stop loss order. With stop loss despite the trader leaving or turning off the trading platform, will protect from bigger losses when the trend is against position orders because the stop loss is already recorded in the broker. But if cut loss we only can do it when running platform trading.

[boltushkin]

If you avoid risk you lose opportunity to earn, because the profit is essentially reward from the market for that you share future uncertainty with them. However I prefer to take low risk and pursue moderate profit goals trading with Hotforex. 

[nanamage]

Forex trading, like any form of trading, involves inherent risks that cannot be completely eliminated. However, you can take steps to manage and reduce these risks: 

*Gain a deep understanding of the forex market and trading strategies to make informed decisions.

*Use stop-loss orders and position sizing to limit potential losses.

*Trade multiple currency pairs to spread risk.

*Practice with virtual funds to hone your skills before using real money.

* Choose a reputable broker with good execution and customer support.

*Limit the use of leverage to reduce the potential for significant losses.

*Keep emotions in check and stick to a trading plan.

 

[boltushkin]

In traditional forex trading, it is possible to lose more than the initial deposit, a situation known as a negative balance. However, brokers that offer negative balance protection have mechanisms in place to limit your losses to the amount deposited. This feature is designed to prevent traders from owing more money than they have in their trading accounts. For example Hotforex offer this feature on all their accounts which is a great step towards safety.

[radex78]

Forex trading is a red product in the financial market where investors may lose half or all of their investment funds. Here traders only try their best to find the best opportunities in the forex market to reap profits, and however, risk management is absolutely necessary to avoid bankruptcy if trading skills are not yet profitable. You can hone your skills with the FXOpen ECN demo account by seriously developing a trading system

[eshal]

While it's true that forex trading carries inherent risks, there's no foolproof way to completely eliminate risk. However, you can manage and reduce risks through strategies like diversification, setting stop-loss orders, and thorough market analysis. Educating yourself with FreshForex , using risk management tools, and starting with a demo account at FreshForex can also help you navigate the forex market more safely. Remember, there's no guaranteed risk-free approach, but informed decisions can mitigate potential losses.

[FXOpen Trader]

On 11/20/2023 at 2:33 PM, boltushkin said:

In traditional forex trading, it is possible to lose more than the initial deposit, a situation known as a negative balance. However, brokers that offer negative balance protection have mechanisms in place to limit your losses to the amount deposited. This feature is designed to prevent traders from owing more money than they have in their trading accounts. For example Hotforex offer this feature on all their accounts which is a great step towards safety.

We must try to understand the risks that are actually present into our trades. When the risks will be minimal then our trades will become more profitable for us.