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Risk Management together with Leverage and Lot size
Member Since Jul 23, 2020
696 posts
Member Since Mar 17, 2021
494 posts
Member Since Jun 26, 2020
323 posts
Jan 13, 2022 at 20:53
Member Since Dec 06, 2019
18 posts
I suppose that the most difficult task for a trader is the ability to combine risk management practices and leverage trading, because there is a fine line between these two things, and if you overpass it, then it can cause you very unpleasant consequences. Basically, leverage trading is created specially for those traders who can take huge risks on themselves and boost their deposits, however, according to statistics, the vast majority of traders who are fond of leverage trading, lose their money. It's very dangerous and if you want to devote your life to safe trading, then you should never pay attention to leverages.
Jan 22, 2022 at 13:34
Member Since Apr 28, 2020
18 posts
All traders know that the risk/reward ratio measures the difference between a trade entry point to a stop-loss and a sell or take-profit order. Comparing these two provides the ratio of profit to loss, or reward to risk. As for the calculation, then you divide your net profit (the reward) by the price of your maximum risk. For example, if you wanted to acquire some stocks and you bought them in order to wait for their prices boost up, if your stock went up to $29 per share, you would make $4 for each of your 20 shares for a total of $80. You paid $500 for it, so you would divide 80 by 500 which gives you 0.16.
Jan 24, 2022 at 01:17
Member Since Jul 19, 2020
742 posts
mab8 posted:
Risk management is very important. And it is not only about using a formula. You need to devote time and keen analysis to establish what is really going on and be able to make a good prediction.
Risk management is very important in trading. I do risk calculations in a way that keeps my account secure. Consider weekly errors.
Jan 27, 2022 at 07:26
Member Since Jan 18, 2022
20 posts
When someone talks about becoming profitable at forex trading, in no way do they mean 100% profits. In forex trading profits and losses are like cog wheels and both of them are important for you. Profits fill your pockets and losses fill your mind. So, stay active and keep making use of risk management strategies to become capable of handling your losses.

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