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Risk and Forex

leo23
Nov 23 2017 at 15:31
posts 567
Risk can be of different types in forex. But the regular risk which is being talked about is the risk of loosing money while trading which is obvious in trading.

But there must be a proper plan along with risk vs reward or drawdown % vs the monthly profit %. One should always consider both the factors risk as well as profitability of a system while trading.

Artificial General Intelligence
Tiffany (TiffanyK)
Nov 23 2017 at 15:55
posts 427
Some people trade until they lose everything, however smart traders do not do this. No decision in trading should be emotional. We all know that bad emotions lead to bad results. Stay positive!!!

Accept the loss as experience
GJscalper
Nov 24 2017 at 11:33
posts 237
TiffanyK posted:
Some people trade until they lose everything, however smart traders do not do this. No decision in trading should be emotional. We all know that bad emotions lead to bad results. Stay positive!!!


 It is soooooooooooooooooo easy to talk about controlling ones emotions but it is something that you already have to have. If you don't, greedy will more than likely cause you to chase a order against you system and the rabbit hole keeps deeper.

@GJscalper for more information
TribalBoc
Nov 24 2017 at 11:49
posts 14
Easier said than done. Only way to eradicate emotion is to use an EA IMHO

mlawson71
Nov 24 2017 at 16:31
posts 1487
For me using an EA never worked in that regard. Instead of thinking 'Did I made the right decision?' I think 'Is the EA working properly?' and then I am anxious all over again.

Patrick14
Nov 26 2017 at 07:58
posts 6
It is good to give a bet to what they offer you in the commercial business, what is not good is that if you have a total of 5000 USD, you can not invest all your savings wallet / investments in a single product and remain at zero, it would be something unprofessional

Mythsphinx
Nov 26 2017 at 15:49
posts 9
We need to take risks to make money. But we need to take calculated risks to make consistent profit. Sometimes even with calculated risks, a black swan event can do a lot of damage to our account which can leave a scar on our psychology. The main thing for me is trying to learn not to attach myself to the profit I've made.

Some traders say that you have no emotions to trade the market properly. I personally think that we are humans and humans naturally have emotions. So I don't try to fight my own nature. I also know that I can't predict the market, so I don't try to. One thing that I can predict, is my own behaviour. It actually took me a few months to figure myself out, but I observed my own behaviour and try to manage them.

I now know how I react when I make/lose money, I know how I react when I win 3-5 times in a row or when I lose 3-5 times in a row. So I plan what to do when it happens. I know how I feel when I start to get greedy and I think of ways to deal with it ahead of times. I also know how I react when I'm fearful. Unfortunately, I haven't mastered fear as well as I mastered greed. But I am trying to deal with it. If people reflect on their actions and try to be proactive towards their own behaviour, then they will probably do be better traders. I personally don't try to get rid of my emotions, I just try to manage them.

In my opinion, the biggest risks in trading is our behaviour when we are emotional about a particular trade. This is the number 1 reason for my failures.

mlawson71
Nov 29 2017 at 16:20
posts 1487
Mythsphinx posted:
In my opinion, the biggest risks in trading is our behaviour when we are emotional about a particular trade. This is the number 1 reason for my failures.


That is certainly one of the risks involved. But you also have random events causing spikes in the price, and those are unpredictable.

BonkersBit
Nov 30 2017 at 15:34
posts 10
Those are risks but they are not that often. Usually they are when there is a economic announcement and those are scheduled

mlawson71
Dec 02 2017 at 15:14
posts 1487
BonkersBit posted:
Those are risks but they are not that often. Usually they are when there is a economic announcement and those are scheduled

True, most are scheduled. But you also have events like the Swiss bank unpegging the CHF which threw the market into chaos totally unexpectedly.

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