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What risk management strategy that you used?


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If we wanted to be good trader, so we must have good risk management as our strategy to limit our losses in forex because risk of losing

in forex couldn't be eliminated. So what is your favorites risk management strategy so far? If me, I like to use Stop Loss because it's the

most simple and the most effective for me to prevent big losses and Margin call.

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@Nikhil

So you're low risk taker traders, that's good so do I. I don't like to risk more than 10%, maybe a little bit risky than you, but

I think that is rarely happen too. I will risk 10% a day if that is really necessary but mostly, I won't use more than 5% too for

all of transactions in a day. So it's not only one transaction, if one transaction I will risk below than 1% for my safety.

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@Nikhil

So you're low risk taker traders, that's good so do I. I don't like to risk more than 10%, maybe a little bit risky than you, but

I think that is rarely happen too. I will risk 10% a day if that is really necessary but mostly, I won't use more than 5% too for

all of transactions in a day. So it's not only one transaction, if one transaction I will risk below than 1% for my safety.

its true 5% is really low when we have low amount means lower $100 and i have such amount .so if i take more risk than it may loss big amount but my TP is good :D . and its ture with big capital 5% risk is low risk which i am agree with you.

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@Nikhil

Maybe that was low amount if you looked it daily but if you could make that much amount consistently, in a month you could get profit

100% from your capitals. I think that was amazing business to get BEP in a month only and I don't think that was low amount of profit.

That's my opinion, maybe each trader has different calculation. It's big profit enough for me.

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@Boniez

Yes, that was good if you could limit how much lot size which you used in a transaction and you limited numbers of open position which

you used each day, that was good to limit your losses but you must limit when the floating loss happened too.

of course, to overcome during a floating minus, for sure we use a stop loss or trailing stop, but usually if I'm monitoring the charts, I'll cut loss manually

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@Boniez

That was good if you could monitor chart and pay attention to the site when it moved and you could cut loss it manually but there is time when

you couldn't cut loss it manually. When the movement of price was so fast, Stop Loss will really help you to limit your losses. If you used cut loss

manually, it will happen requotes so oftenly.

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  • 3 weeks later...

Risk management is the most important thing in forex trading. This is because there is no way that we will continuously increase our trading account and elongate our trading career. It is good money management that helps us to secure our profits and prevents us from losing good profits that we are making. Compounding is a good type of risk management.

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yes i am agree with you that it will help us to keeping profit and secure our initial balance means secure our account from washout . actually there is no impossible to forex means price ups and down and only money management can save us from horrible trouble.

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Yes, losing in forex cannot be prevented. Though it can be lessen, still losing is visibly present.

There are lots of strategies that you may consider for you to succeed in forex trading. Forex has a lot of components, and it's impossible for you to know ALL of that.

So the best thing is to set your strategies in order to eliminate losing during trading.

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  • 5 months later...

My risk management strategy is simple. First of all, I do place a tight Stop Loss and a Take Profit on each my trades which keeps my account safe from those volatile price movements and avoids me from loosing more then expected from my trades. Moreover, I never invest more than 2% of my initial capital on a single trade.

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  • 2 months later...

Well i do go with two types of trades one day trade or short term trades and for those i apply strict stop loss and try my entry near major support level but i dont wait for the target to reach near major resistance when ever i notice a reversal i close my trend, and in long term trades i go long with only instruments that has good fundamentals that too with very low leverage and without stop loss.

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  • 4 weeks later...

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Nice post.

 

Anyway, at this point of my trading career, my risk management is not that solid yet. Most of the time I do not put SL in my order as I do not leave a trade. I am in front of the chart looking for the market movement. Sometimes, I lose a lot because of this.

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  • 2 months later...

It is the fact that I risk about 1% for every given trade I take regardless of the pair, the time of trading, the signal strength and the type of currency pair whether majors or not. I never go beyond this limit and no matter how greed tries to tempt me, I will not.

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  • 1 year later...

I use stop loss all the time on long term trades. I exit the trade as soon as I see it turn downward. I watch my trade very closely. I try to build as much knowledge and experiences as I can and I do not gamble with my money. I do modest amount of capital to prevent a lot of losses. I also use low leverage to prevent total wipe out. I do not trade during non market hours. 

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I am only stick with small margin size per trade which require me to not necessary suffering big loss when I am make wrong decision. I am always make my capital able to cover 1000 pips loss. this calculation based on my trading strategy performance. even in worst scenario, I won't suffering loss till 1000 pips in short period of time.

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  • 2 weeks later...

Risk management is very indispensable in forex trading. With good risk management, will help us to minimize the risk. Because forex is inseparable from risk. Forex risk can not be eliminated, but can be minimized. Risk management that is often used by traders is Stop loss. This is one of risk management, which we limits the extent to we will bear the loss.

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  • 2 weeks later...

Forex trading is most important and popular all over the world, because make more profit from forex is very easy so it is most popular. But it is risky business too. If a man is greedy it will be harm for his. So we need to leave our greed and would be honest for forex trading

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