Risk and Forex

Mohammadi posted:
In Fx trading , by and large traders in particularly the newcomers fall a great loss by taking high leverage due to non sense planning and zero risk management policy, nothing to do with high leverage at all. so, I think, before trading with high leverage we have to know how to manage risk.

Do you have any concrete suggestions and advice?

From this market place so many traders fail despite of having powerful trading strategies, because they have no proper money managing plan. the success in Fx depend on money management , so we the traders who are particularly beginners have to emphasis on money managing plan besides acquiring good trading knowledge.

Yes Risk is everywhere in Fx, because despite of good trading knowledge that’s not possible at all to predict the real faction of this market with certainly , so it is more appropriate to make sure proper risk managing plan before trading .

Mohammadi posted:
Yes Risk is everywhere in Fx, because despite of good trading knowledge that’s not possible at all to predict the real faction of this market with certainly , so it is more appropriate to make sure proper risk managing plan before trading .

Well that is very generic phrase
What should be the outcome from it? Like that trading brings risk. Common everyone already knows it.

Forex trading was challenging, same now as like before and it will too. Till now new traders are struggling as like before! By the way, I have 5 years trading experience and till now I am learning Forex trading from my live trading mistakes.

I have seen according to my trading experience maximum traders in particularly the newcomers always consider high leverage at high risk. but I I don’t consider it at all , if there is any risk it is completely with non sense planning as well zero risk managing plan . Nothing to do with high leverage. so before trading with high leverage it is more appropriate to make sure real risk managing plan.

For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.

Imamul posted:
For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.

Good choice. Using 1:2000 leverage is a recipe for disaster, in my opinion.

managing risk and money when trading is really difficult task , because market moves at random mostly times and no one can predict it with surely . only long term experience can be supportive to mange most accurate risk and money which is real key to bring profit certainly,.

mlawson71 posted:

Imamul posted:
For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.

Good choice. Using 1:2000 leverage is a recipe for disaster, in my opinion.

Why do you think so?

Imamul posted:
From this market place so many traders fail despite of having powerful trading strategies, because they have no proper money managing plan. the success in Fx depend on money management , so we the traders who are particularly beginners have to emphasis on money managing plan besides acquiring good trading knowledge.

You are right money management is very crucial along with good trading strategies. We can minimize our risk in Forex but we can not eliminate it completely.

This volatile trading place is very much complicated for all kinds of traders in particularly for who are newcomers. Newcomers first of all have to observe all market principle which is more appropriate to survive in here in a proper way. They have to emphasis firstly only learning by reading books, Pips school, Forex.com and from much more Forex website. And with this process also should trade in demo account to make sure market movements. But practically mostly don’t believe the importance of demo account at all.

I am a fairly new to trading and I do see that there is a point to demo but I just don't get the emotional buzz that I get from a real account. I trade very differently on demo to a real account

There is nobody who can predict the real faction of this market with certainly, that’s why for making profit with certainly we the traders have to depend on our trading strategies that we select according to our trading experience , we have to choose the platform that is more appropriate to the concept of trading that will be used , if you love scalping should choose the broker that allows trading concept such as this.

If you are venturing into forex then there is no chance that you can avoid risk at all. Prices can fluctuate very much during he trading session. So you need to keep you eyes and mind open at all times. However you can guard yourself against the risk element by employing good trading strategies and risk management plan. Manage your money and risk well.

Risk and forex are part and parcel of the same game. But it is true that unless you are willing to take risk you won't have much chance of big profits. The thing is that you should know what risk you can afford to take i.e. take well calculated risks. Use effective risk management techniques.

You need to be in the game to win but stupid risks will always cause losses. Better to mange your account and grow steady rather than try for get rich quick

togr posted:

mlawson71 posted:

Imamul posted:
For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.

Good choice. Using 1:2000 leverage is a recipe for disaster, in my opinion.

1:100 and 1:2000 leverage makes no difference when calculating position sizes. The only difference is that you can open up more positions with 1:2000 leverage compared to 1:100. If you have a good plan and you have a maximum number of open trades that you allow yourself to take and remain loyal to that plan, then it doesn't really matter what leverage you use. If however you have no self control(or don't like to mentally fight with yourself about how many positions to take) and willing to open as many positions as possible, then choosing the right leverage is important as it will set a limit as to how many position you can open before hitting margin.

Forex is risky and there is little you can do to escape this risk. In my opinion this is what makes it all the more thrilling. But yes of course one should pay attention to managing their account and money well. Forex is risky business but it is up to us to not make it more risky than it is