Risk Management together with Leverage and Lot size

Trade safely as we know it is a risky market.

Imamul posted:
actually there is nothing 100% in Forex trading for that reason any kind of risk management works to fail most of the time.

Yes. You have to take risks to survive in this market.

My trading career I always take high leverage in demo account to see the performance how it works. This approach always helps me to avoid risk when trading practically.

I don’t know for whom the leverage size is 1: 1000 like Amarkets, but it suits me, because this is how I can increase my earnings and work with confidence and perspective.

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.

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.

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.

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.