Huge gain or limited Risk- What is important to you?

It is very important to preserve your capital and limit your losses even if it means not taking huge risks. Forex market is not everyone’s cup of tea and one should not just put money into trades without analysing them for the sake of taking a huge risk.

Traders want both. But fail to maintain in trading. New traders should focus on reducing risk.

The most important thing is to keep the money that you've invested safe, otherwise, in chase of high gains you'll lose everything you've got.

I care more about managing risk. I do risk more on trades that I’m more confident about, but the main goal is to lose less money than I make. I might risk more in the future once I’ve been trading for longer, but it isn’t worth the chance of losing so much to me right now.

lanzu posted:
Many traders have huge gain and winning ratio but suddenly they blow their account for making huge profit over a month. What do you think what is most important while trade with real money?

You can’t have it all. It’s always good to use increased Leveridge when starting a small account to build it quickly that provided you do well you should scale that back as the account grows in order to preserve the balance

The emphasis is put too much on profit and not enough on risk with newer traders. This is completely the wrong way around. The simple fact is you can't trade at all if you blow your capital so protecting it should be priority number 1!

Those trying to get a huge gain are just gambling. Better to grow steady profits with limited risk

In this case, I have to work with the risk ratio. If risk management can be maintained properly, huge gains and limited risks can be made.

RobSchiz posted:

LukeRachel posted:
In this case, I have to work with the risk ratio. If risk management can be maintained properly, huge gains and limited risks can be made.

Risk management is very important to make money from this market.

Yes, of course, risk management is very important for a trader.

WaltonCharles posted:

RobSchiz posted:

LukeRachel posted:
In this case, I have to work with the risk ratio. If risk management can be maintained properly, huge gains and limited risks can be made.

Risk management is very important to make money from this market.

Managing risks is very important to survive in this market.

Every trader should maintain risk management properly.

LukeRachel posted:

RobSchiz posted:

LukeRachel posted:
In this case, I have to work with the risk ratio. If risk management can be maintained properly, huge gains and limited risks can be made.

Risk management is very important to make money from this market.

Yes, of course, risk management is very important for a trader.

I agree with you that risk management is very necessary but I guess traders these days simply ignore the risk ratio strategy. They prefer to simply follow the herd technique where they follow a successful trade of a particular trader and lose a good amount of money as they had no proper strategy in place.

Risk is the most important thing to me for sure. If you gain lots and risk lots itll even itself out if you keep your risk tight in the end the gains will outweigh it. Also wont take a lot to do so

I don't believe that taking too many risks will blow your account in a matter of days . A person should take risks according to his appetite.

mattieharper posted:
I don't believe that taking too many risks will blow your account in a matter of days . A person should take risks according to his appetite.

Or until his bank balance hits zero!!

@hoagsobjects This cracked me up. When we run behind a highly profitable trade, there are 50% chances of making a profit and if the other 50% comes out to be true, one could hardly handle that equally huge loss. The best is to focus on mitigating losses.