Just curious to see how others manage their risk and position size
Do you trade a fixed Lot size of lets say three lots and then determine if the trade setup is within your risk % parameter? If not, you don't take the trade.
Or do you trade with a fixed risk percentage and adjust your lot size accordingly and take every trade thrown at you?
Do you trade a fixed Lot size of lets say three lots and then determine if the trade setup is within your risk % parameter? If not, you don't take the trade.
Or do you trade with a fixed risk percentage and adjust your lot size accordingly and take every trade thrown at you?
"Formal education will make you a living, self education will make you a fortune"
Risk management is a very important point in trading, which helps us avoid unnecessary mistakes.
forextrader777
Membre depuis Jan 16, 2021
posts 133
Jan 21 2021 at 04:29
I trade with a fixed risk percentage and adjust the lot size accordingly.
joastdaffy
Membre depuis Nov 27, 2020
posts 24
Jan 28 2021 at 10:13
While entering a trade, I calculate the stop loss and take profit. I never trade without them and that’s what has been helping me in saving my money.
yana hansen
(78678676)
Membre depuis Oct 16, 2020
posts 137
Jan 30 2021 at 07:26
joastdaffy posted:That's the right thing to do.
While entering a trade, I calculate the stop loss and take profit. I never trade without them and that’s what has been helping me in saving my money.
forexminded
Membre depuis Feb 04, 2021
posts 35
Feb 11 2021 at 09:18
Firstly, I set the percentage of risk which I can afford and then think about the lot size.
I trade at the risk reward ratio of 1:2 to minimize the losses and keep the profit in margin
chesteroconnell
Membre depuis Dec 16, 2020
posts 5
Feb 24 2021 at 12:06
For managing risk, I usually try not to risk more than 1 or 2% of my total capital and trades. This has become an effective strategy for me and has worked out well so far.
keyaanhenry
Membre depuis Dec 16, 2020
posts 18
Mar 17 2021 at 09:23
I try not to risk more than a certain percent of my profit. Works for me.
hattiethomas
Membre depuis Dec 23, 2020
posts 15
Mar 30 2021 at 11:16
It is better to focus on risk management than to ignore it and I generally don’t risk beyond a certain point. Keeping it to about 2 to 3% of your trade helps a lot.
jonathandaniel
Membre depuis Feb 20, 2021
posts 53
Sep 28 2021 at 07:21
No, there is never a specific setting that I use while trading. It varies from trade to trade and currency to currency. But yes, the risk is never more than 5% of my total trading capital.
Aaron Countee
(FaintToasted)
Membre depuis Jun 19, 2021
posts 49
Sep 30 2021 at 09:11
kc8yty posted:
Just curious to see how others manage their risk and position size
Do you trade a fixed Lot size of lets say three lots and then determine if the trade setup is within your risk % parameter? If not, you don't take the trade.
Or do you trade with a fixed risk percentage and adjust your lot size accordingly and take every trade thrown at you?
I have strict rules I follow:
They are in categories based on how powerful I believe the trend will be.
Weak/ sideways ranging markets (quick pop/drop and that's it) I will have several positions open for only 0.01 lots over 10 pairs.
then when I see one pair that stands out and have NEVER gone back to negative in the past hour during premarket, when the market opens I increase position size to 5-10 lots, then close the trade within the first 10 minutes. This can make me a quick $800 to $1,000 in 20 pips.
On a moderately strong or mildly probable trade, I will pick up 0.1 to 0.2 lots and then watch to see if my timing was correct. If it is I will increase to 0.8 to 1 lot.
High probability/ strong trend These I will get in around 0.1 lot and then when it hits 5 pips to 7 pips I will increase to 1 lot and then if it hits 10 pips I go in 2.5 lots total. Get out at 20 pips minimal. I have held all the way to 300 pips before... then held as if fell all the way back to 157 pips and closed the trade. That's a $15,000 profit. I average between $1,400 to $1,600 profit per trade.
*I kill pips for fun.*
I have stric risk management policy. I risk maximum 2% of my capital. And I open only one trade at a time. Once I closed that trade, I think for next trade.
SteveHanks
Membre depuis Mar 17, 2021
posts 536
Oct 06 2021 at 18:26
UweMoench posted:Managing risk is the toughest job in this market.
I have stric risk management policy. I risk maximum 2% of my capital. And I open only one trade at a time. Once I closed that trade, I think for next trade.
@SteveHanks It can be the toughest but it is very important. Limiting the use of leverage and using a stop loss can be really helpful while applying risk management to your trade.
In forex, risk management is important for traders, and I would like to know which is the best risk management strategy and position size?
LukeRachel
Membre depuis Mar 16, 2021
posts 477
Oct 12 2021 at 14:16
The trader succeeds only when he manages the proprietary risk and trades. I must learn this experience. As much as I don't know about strategy, I have to manage risk.
RobertFerrari
Membre depuis Aug 15, 2021
posts 415
Oct 16 2021 at 18:34
jonathandaniel posted:Yes. You are right.
No, there is never a specific setting that I use while trading. It varies from trade to trade and currency to currency. But yes, the risk is never more than 5% of my total trading capital.
LukeRachel posted:you need to take risks from time to time, here I completely agree with you
The trader succeeds only when he manages the proprietary risk and trades. I must learn this experience. As much as I don't know about strategy, I have to manage risk.