Are you really following risk management while trading
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Thread: Are you really following risk management while trading

  1. #1
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    Are you really following risk management while trading

    We all know that risk management is very essential when we trade in Forex that entails a high level of risk.

    let me ask you a simple question. How many of us are actually applying money management when we trade. Please chose any one of the five options below

    1.I dont use risk management as it is not necessary.
    2. Yes I use risk management and risk only 2% of my capital in trading.
    3. Yes I use risk management and risk only 4% of my capital in trading.
    4. Yes I use risk management and risk only 5% of my capital in trading.
    5. Yes I use risk management and risk only 10% of my capital in trading.
    6. I use risk management but the options mentioned above are not rational as risk management relates to my own risking ability.

    Please chose one option before continuing reading. Obviously first option I do not think anyone might have chosen. But how many of you have chosen an option from 2 to 5. I am sorry for you all but you do not understand what risk management is and for using it you need more learning.

    For those who chose the 6th option they are actually correct. Not agree with me continue reading. Forex is a leveraged trading platform and what the need is there for me to deposit a large amount of money when I risk only 2 or10 % of my capital. For example if I want to risk only a 1000 $ then what on earth is there a need for me to deposit 25000 $ in my trading account. Risk management has nothing to do with the senseless percentage rules. It insists on risking the amount of money in trading which you can afford to lose.

    Please express your views regarding my thoughts above.

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  2. #2
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    this was a nice thread. Most people consider risk management as nothing but risking just 2% of our deposited money. now i know that is wrong. stepping into the forex market and committing your money without good knowledge of the market is like jumping into the ocean without knowing how to swim. I t is expected of all forex traders to learn and practice well before trading with real money.

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  3. #3
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    I am sorry to say that in my trading, I don't usually calculate the risk and don't do proper risk management, but whenever I see that market is reaching my capital and there isn't any trade with profit then I start thinking about it, I don't close the trades, rather I hedge the positions and sometimes double the position on opposite direction.

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    I also never follow any risk management. Usually I traded only with 10-50 $ and that itself being a small amount serves the purpose. i can bear the loss of that amount and even if account blows it does not hurt me much. I also not use stop loss but leave good margin to make it hard to lose my account.

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  5. #5
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    i am not sure about it, there is a time for me to trade with take higher risk and even more than 10 %, but also there is a time for me to trade with only take lower risk and if i was not sure with my own analysis, but everything here, that i have to get ready to handle unwanted situation

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    I do not follow percentage while taking risk but I use a stop loss. I try to keep good margin for every trade. Margin is the amount of capital that is available to be used for trading in Forex market.Everyone should use it more carefully to gain maximum output from the Forex trading and avoid taking high lots

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    Quote Originally Posted by newentry View Post
    i am not sure about it, there is a time for me to trade with take higher risk and even more than 10 %, but also there is a time for me to trade with only take lower risk and if i was not sure with my own analysis, but everything here, that i have to get ready to handle unwanted situation
    first you must learn is the management of risk, you should practice on a demo account first, if you can survive, you can apply in the real account. if you have a strong signal to the open position, you can use big lot sizes, it will generate a huge profit. but you have to know the risks, you will get a great risk. you know forex is high risk and high return

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    Registered user Hukam's Avatar
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    Yes because its very essential to use our money management and risk management in trading only then our trading system will be much stronger which will give us a very good trading result capacity if our trading management system is very weak then it will be much harder to survive in this market for long term goal

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    Registered user miya's Avatar
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    I take risk in my trading but I didn't follow any percentage while taking any risk. I try to keep quite a good margin in my every trade, but we should use it carefully to gain good output from Forex trading. I generally prefer stop loose for my trading style because of my unexperienced in the trading environment.

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  10. #10
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    In my view we all should use the proper risk management in our trading personally i don't have much experience of real trading account yet because I am learning in this business but we all heard everywhere about this serious rule of risk management we have to always stick with this rule in trading

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