Is it possible to reduce the risk in the forex market?
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Thread: Is it possible to reduce the risk in the forex market?

  1. #1
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    Is it possible to reduce the risk in the forex market?

    Is it possible to reduce the risk in the forex market?

    Risk reduction in the market depends on you

    In other words, there must first be a balance between the amount of capital invested in the market and the size of the lot used in each transaction and the volume traded error up to 5 percent of the capital volume.

    It must be 1 or 2% as the market is volatile and fast and at times the market reflects its movement on you when trading for a certain time so your strategy works
    That you used on a time frame of long-range tyres, for example, when trading in the size of an amount that is disproportionate to the size of the capital, it is possible to you lose your money or you rush to close deals on a huge loss.


    So it's important to understand the nature of each time frame movement in the program and put the size of the lot .For every deal that fits the amount of capital and thus reduces the risk to your account and this is the basis for sound capital Management

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  2. #2
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    We can decide what we want to do in forex trading, we can reduce the risk or increase it. At first, we need to make the decision if we want to take on little risk or we want to trade on higher risk. But I think most of the times, we get so emotional and then we take on huge risk which in return makes us to loss our money. taking risk in forex trading depends on how much experience we have obtained, so if we have less experience we have to trade with lower risk.

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  3. #3
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    We can’t deny the fact that forex is a risky market place and a trader should try to minimize his trading risks with the adoption of suitable risk management processes. Yes, a trader can minimize his trading risks if he can use Stop Loss, Trail stop or other pending orders in a systematic manner. Again, hedging or any other risk minimization approach can be used so that a trader can minimize his trading risks to greater extent.

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  4. #4
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    Abolutely yes.the risk in the forex market can be reduced.It is often said that,risk is not knowing what you are doing.This means that risk can be largely mitigated by the relevant knowledge of how to mitigate risk in the forex market.Knowing what percentage of capital one is willing to risk per trade,the safe level of lots,Market timing,adequate application of stop losses and take profits will play huge role in risk reduction when it comes to forex trading.so,my response to your statement above is in the affirmative.

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  5. #5
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    Quote Originally Posted by Archman View Post
    Abolutely yes.the risk in the forex market can be reduced.It is often said that,risk is not knowing what you are doing.This means that risk can be largely mitigated by the relevant knowledge of how to mitigate risk in the forex market.Knowing what percentage of capital one is willing to risk per trade,the safe level of lots,Market timing,adequate application of stop losses and take profits will play huge role in risk reduction when it comes to forex trading.so,my response to your statement above is in the affirmative.
    there is only one way to reduce losses in forex business and that is for the trader to learn and understand how to analyse the market,forex is not a sure thing while trading and this is why we need to protect our investment when trading as well,risk can be reduce if we have a trading pattern that can give profit all we need to do is to protect our investment.

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  6. #6
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    Quote Originally Posted by Buffon View Post
    Is it possible to reduce the risk in the forex market?

    Risk reduction in the market depends on you

    In other words, there must first be a balance between the amount of capital invested in the market and the size of the lot used in each transaction and the volume traded error up to 5 percent of the capital volume.

    It must be 1 or 2% as the market is volatile and fast and at times the market reflects its movement on you when trading for a certain time so your strategy works
    That you used on a time frame of long-range tyres, for example, when trading in the size of an amount that is disproportionate to the size of the capital, it is possible to you lose your money or you rush to close deals on a huge loss.


    So it's important to understand the nature of each time frame movement in the program and put the size of the lot .For every deal that fits the amount of capital and thus reduces the risk to your account and this is the basis for sound capital Management
    its very possibl to reduce the risk in the forex market.
    First, analyze the market carefully and thoroughly, check the news release, make a mapping. decide what you want to do to open the trade. if the market is not yet possible to be cultivated then be patient.
    make your loss limit, prepare risk. accuracy in analysis / mapping and also limiting the maximum loss that you can receive is a good way to reduce risk.

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