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Proper risk management


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27 replies to this topic

#21
uncle gober

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That's right, traders must also be able to be better and be able to get more leverage in preparing the trading plan, this is used so that traders can better survive and manage existing funds and risks more leverage than before.


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#22
michel

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No matter if have a good forex trading system and if you have the ideal mindset, if you're not using a proper risk management, you aren't likely to be profitable in the long run. An adequate risk management must avert a forex dealer going broke and in the same time must see to it that the forex accounts has a chance to grow. Probability plays a huge role in tackling a decent risk management. The danger percentage per trade relies on the opportunity to go broke in a less positive period while at the exact same time the comfortable zone in addition to the growth potential should be thoroughly detected. 

Minimize the opportunity to go broke - For example, if every time you're playing for high stakes into such an extent that you're risking 50% of your accounts, there will be a fair possibility you will be going broke when having the smallest bit of hardship. No matter the possibility of your own trading system, there's always the risk you could lose a variety of trades in a row. With no money available you won't be able to trade, so its essential that you manage your financial resources with good care! - Guidelines regarding danger percentages per trade - Normally forex traders hazard about 1% up to four percent of their accounts per trade. 

With these percentages, the possibility to go broke should be negligible. The smaller the risk percentage that a trader is used to manage per trade, the smaller will be the possibility that he\/she is going bankrupt. Growth potential - And on the flip side, of course, a forex account has to get an opportunity to grow. This way its possible that a trader can become too nervous by risking four percent per transaction and by doing so is making precisely the wrong decisions based on emotional motives. 

Nevertheless, an opposite reaction might also be possible. So see to it that you manage a risk management which will suit your comfort zone! - The risks of a competitive hazard management - The above-described guidelines don't exist for anything. You've already learned that chance plays a very major role and that you should look at all the long run. You will have to understand that the more competitive your risk management becomes aggressive, the more you are going in the direction of gambling! - Additionally, you shouldn't forget the emotional side of this development. Whenever you risk a relatively high percentage per trade and things aren't in your favor for some time, as a consequence of this the negative implications will probably be quite a lot bigger than just losing precisely the money that you've been investing until then.


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#23
uncle gober

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because it is in the forex that will never have an instant, so traders should be able to better and more leverage in managing funds and risks in the real account better to be able to generate profits and minimize the risks that exist with both .


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#24
Sininfinity

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To stay profitable in the long run a trader has no choice but to manage his risks and trade with a plan. Higher risk leads to higher profit may sound good on paper but if one of those risks fails to deliver profit then the loss would also be greater. So risk must always be controlled.


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#25
uncle gober

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That's right, because when you jump into a real account, traders must be able to be ready to have sufficient trading skills so that they can become more maximal in managing existing funds and risks better to be able to generate profits.


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#26
bearhugs

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Traders must have an edge to be profitable. The traders that have discipline, have done their homework about historical price action, and stay in control of their emotions will make money.


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#27
uncle gober

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implementing a discipline must indeed be done well by traders so that they can be better and can be maximized in managing existing funds and risks better than before and can continue to develop them well.

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#28
Namu

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in this trading forex we need to anticipate the risk before we gain a profit,  better start with good condition and fresh mind to make sure we can handle the risk and we choose a right action to get more profit , as i do in Freshforex by managing my own risk and profit to more stable and consistent


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