To Control risk on Forex Market...

New comment
 

Hi Traders

To control risk


One of the most important jobs as a day trader is to control your risk exposure. Sure, controlling risk is a concept you must use in any type of trading, however in day trading you must look at this issue from a different angle. Since your job is to capture various price swings during the day naturally your profit objectives will be much smaller then of a swing trader (who places a single trade aiming for a much larger profit objective).

So, when placing several trades during the day it can be easy to “drift” away from your pre-determined stop losses. A common (very common actually!) day traders thought is “if I extend my stop loss just a bit I hope the market will turn around”! Hope is one of the trader’s biggest enem

These little extensions of stop losses add up and suddenly without noticing you are losing more dollars per trade than planed making your risk/reward ratio turn against you...

 

Good post.

dekac:
Hope is one of the trader’s biggest enemies.

Hope is the reverse side of discipline.

dekac:
These little extensions of stop losses add up and suddenly without noticing you are losing more dollars per trade than planed making your risk/reward ratio turn against you...

Never move your stop loss ... unless in the right direction (in your favour!).

Again, this is D-I-S-C-I-P-L-I-N-E.

Accept your loss.

FerruFx

 

Hi Traders

This principle is key for any type of trading but particularly for day trading...

 
FerruFx:
Never move your stop loss ... unless in the right direction (in your favour!). Again, this is D-I-S-C-I-P-L-I-N-E.

Stop-Loss help traders control risk by capping losses.. So it's not good to take the risks on moving extensions..

The general rule is to be discipline! Discipline includes hitting your stops and not following the temptation to stay with a losing position that has gone through your Stop-Loss level.

 

Hi Traders

How trading things going with you....

You can have the best trading system in the world but if you are not disciplined I guarantee you will not be a successful trader....

 

Yes, discipline is probably the signal most important characteristics that all successful traders have in common.

 

Very nice post for risk control in forex trading...i find this post very helpful and valuable in forex trading.

 

risk can be managed with a good plan when you willknow what is your target to achieve from any specific trade , you will do alltrading in a limit which is bearable for you. After experience and practice you will slowly know the art of risk control.

 
dekac:
Hi Traders To control risk

One of the most important jobs as a day trader is to control your risk exposure. Sure, controlling risk is a concept you must use in any type of trading, however in day trading you must look at this issue from a different angle. Since your job is to capture various price swings during the day naturally your profit objectives will be much smaller then of a swing trader (who places a single trade aiming for a much larger profit objective).
So, when placing several trades during the day it can be easy to “drift” away from your pre-determined stop losses. A common (very common actually!) day traders thought is “if I extend my stop loss just a bit I hope the market will turn around”! Hope is one of the trader’s biggest enem
These little extensions of stop losses add up and suddenly without noticing you are losing more dollars per trade than planed making your risk/reward ratio turn against you...

Risk management is very important in forex trading.

 

It is very important to control risk in order to have profit, before trading we should keep in our mind that the risk ratio should be low as compare to profit..

 

That happens risks in the forex is very large. Price is always changing forex market is unstable. We have to avoid that risk. The easiest way is we have to discipline our trading. With discipline, we can avoid the risk. So the result will be maximum.

1234
New comment