Reduce your trading risk!

The university research into reducing the risk and increasing the profitabilty of Retail FX traders is coming to an end, many thanks for all those who have participated. One last request please is for feedback on anyone who has used the NTU Trade Monitor EA (available for free here https://www.retailfxtrader.com/ea.html ). Feeback via https://www.retailfxtrader.com/feedback.html

Over the course of the research we believe we have been able to answer the question of 'how many traders are profitable' - to show that currency pairs do exhibit repeating, non-random behaviors and identify the key risks to retail FX traders (and produces the free EA above to help traders address these). All of this information is available at https://www.retailfxtrader.com/papers.html

Many thanks again (and please help us with feedback on the EA via https://www.retailfxtrader.com/feedback.html

Chris

Very interesting stuff! Good job! Greetings

I also agree with you guys. Such researches are quite useful and it's good that we have access to the info.

1. Plan your trades
2. Apply stop loss & target points
3. Calculate expected return

Traders should know about when to plan & enter or exit market even before they execute it. If the trader is using stop loss effectively, he can minimise the risk of loss and thus is confident about his strategy and affordability to lose. Trader needs to make a battle plan before hand so that he is sure that he has won the war already!

Thank you for bringing the topic back to life. Nice one!

You can take number of steps to reduce your trading risk. First make sure your broker is well regulated and you should check the trading environment.

There was a survey on retails traders and found they made profit from 71% trades but still they are losing money! Most lose trader use excessive Leverage and they move away their Stop Loss and keep praying! So, I bad trade make significant damage to the account. Trader should not favor any single trade but see all trades equal. I am trading with Hanseatic Broker and they keep 1:50 leverage by default unless you change it.

And trader should focus on losses first not the profit. And follow money management like a commando soldier.

Trading, in any kind of market, carries a high level of risk and all may not be suitable for everyone. However, trading has still emerged and became affordably available to all in the last 20 years with the help of the modern technology and online services. Unfortunately, “risk” has still a big part in trading and it can really not be taken away, but there are ways written in this article (https://itrader-forex.ca/forex/trading-higher-risking-lower/) on how you could lessen them without the expense on lessening your trade.

Having lower leverage is one side of the story, another is to have a negative balance protection offered by the broker so that at least your losses don't exceed your deposits.

AlbertoCo posted:
Having lower leverage is one side of the story, another is to have a negative balance protection offered by the broker so that at least your losses don't exceed your deposits.

Hello,
I would not leave the protection to my broker. It is much better and safer for your account when you have control, not someone else.
The risk could be limited by other ways like: position sizing depending the size of your account, by placing protective stops or to have mental stops and when you are not in right market direction just to leave the market.

Risk is part of the market, it is a fundamental part of it. In fact I think that's what makes it fucking interesting 😁

gels4 posted:
Risk is part of the market, it is a fundamental part of it. In fact I think that's what makes it fucking interesting 😁

Exactly, market risk is associated with fluctuations in financial markets, and in which they are distinguished; Exchange risks as a result of the volatility of the foreign exchange market. Interest rate risk resulting from volatility of interest rates and market risk that specifically refers to the volatility of the markets for financial instruments such as stocks, debt, derivatives.

gels4 posted:
Risk is part of the market, it is a fundamental part of it. In fact I think that's what makes it fucking interesting 😁

I was thinking the same thing but thought it wouldn’t be nice to post it 😁 😁

I believe that the operations involving greater economic gain are also the most risky.
If we decide to invest our capital in foreign exchange, the greater the amount of money used in the exchange, the greater the risk of losing, but we can also make more profits.

Using higher leverage would accelerate both your profit and losses. If you use higher leverage you must maintain calculated SL and TP . It was one of the main reason to choose hanseatic as they cover negative balance protection so my account won’t exceed by losses.
I found SL&TP don’t work in sudden crash. So, using less leverage is always better. And ignore the currencies which having a turmoil or have a crash probability due to political/economical reason.

kerstin71 posted:
Using higher leverage would accelerate both your profit and losses. If you use higher leverage you must maintain calculated SL and TP . It was one of the main reason to choose hanseatic as they cover negative balance protection so my account won’t exceed by losses.
I found SL&TP don’t work in sudden crash. So, using less leverage is always better. And ignore the currencies which having a turmoil or have a crash probability due to political/economical reason.

I was just thinking the same thing..😂
There is considerable exposure to risk in any currency transaction, any currency transaction involves risks, including, that potential change in political and / or economic conditions can substantially affect the price or liquidity of a currency.
On the other hand the leverage of the currency market means that any movement of the market will have an equally proportional effect on your deposited funds. This may go for, but also against.

I think unfortunately there is a lot of risk in any forex trading. There is no doubt that the most important thing for the winner is to work intensely and learn the techniques of input and output of the system that they use. You have to try to interpret because the market goes up or down, there is behind that movement and ... use common sense.

with good automated trading manager

You can reduce your trading risk to minimum with following a previously established strategy, excluding your emotions from the process and keeping your EAs, indicators, charts, etc. organized. The risk in FX trading can never be 0% but can be reduced to minimum.

besttools posted:

with good trading manager

It is a very valid tool to operate and do well. In a safe way! Every trader must be well equipped in the face of risk, there is no doubt about it.