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

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?

capital preservation

nikosk0 posted:
capital preservation

Right. But many investors and trader love the winning ratio over the drawdown. Gain is important, I also agree. But protection of our capital is more important.

just limited Risk. Cause If you have money you can trade any time any place but if you loss your money you can not trade.

malik6607 posted:
just limited Risk. Cause If you have the money you can trade at any time any place but if you lose your money you can not trade.

absolutely right.

malik6607 posted:
just limited Risk. Cause If you have money you can trade any time any place but if you loss your money you can not trade.

Exactly what I wanted to say

lanzu posted:

malik6607 posted:
just limited Risk. Cause If you have the money you can trade at any time any place but if you lose your money you can not trade.

absolutely right.

Exactly. Forex is all about risk and mitigating risk. Gains will come and go only if you survive in the game,hence risk should always be limited.

jonny99 posted:

lanzu posted:

malik6607 posted:
just limited Risk. Cause If you have the money you can trade at any time any place but if you lose your money you can not trade.

absolutely right.

Exactly. Forex is all about risk and mitigating risk. Gains will come and go only if you survive in the game, hence risk should always be limited.

But most of the trader sometimes investors forget this golden rule to earn money. They just want to be rich quick.

Of course, I'd prefer a large income. I always trade big. Sure thing, that doesn't mean I don't care about risks, I use stop-loss. But what the point in trading, if you're shaking at every dollar you could lose. If I lose $100 but make $1,000 next month, that's a success for me. Even if the first month wasn't very profitable.

Of course, many traders are chasing huge profits, but this doesn't mean that it is worth taking risks and getting rid of all your savings in one go. Being a smart trader means not to take risks where you shouldn't. I myself try to always take minimal risks and if a deal becomes obviously a failure, then close it before I lose more than I would like. Of course, this is always individual, but for me protect my account and profit is more important than to immediately earn a large amount of money in one month, and in another month to fully lose it.

nikosk0 posted:
capital preservation

This
But I will say having a proper risk management will be in favor in your trading.

The best option is to balance these two areas.

Limiting risk is way more important for me.

At least 1:2 risk-reward for high probability trades. I try to have at least money to last 30-50 loses.

I think limited risk is more important. Higher risks can lead you to more losses. You need to have a proper risk management and trade accordingly.

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?

Forex trading comes wit risk so it is always better to reduce risk in order to cut your losses and maximize profits.

Balancing between these days can be very vital in your trading journey

We should rather strike a balance between the two rather than focusing on one. At the end that's one of our major goals. More return at less risk.

Duktilar posted:
The best option is to balance these two areas.

Yes. You are absolutely right.