moonchild
VIP Contributor
Applying risk management in FX is tantamount to success and and it also helps in securing your account
Before I started trading I've read a lot of blogs on how to trade and most traders advised me to start with a big amount of money, one guy went as far as saying if I don't have 100K as a starting balance I shouldn't think of trading as a career.
I was really dumbfounded on what to do but after weighing my options, I decided to start with just 10$, because that's what I can afford at that moment, even though I blew the account I learnt a lot on risk management.
It's all depends on what time frame your trading in, because you don't expect a scalper to use stop loss every time he takes a trade, your risk management should be your mental stop loss that you put on your mind, and if it went against you, exit immediately, follow this rule strictly.
Secondly, pips don't matter as far as I'm concerned what matters is the amount of money you're willing to risk.
Thirdly, always buy or sell at key support or resistance level, this will help mitigate losses because when price is around this level it doesn't move haphazardly.
Before I started trading I've read a lot of blogs on how to trade and most traders advised me to start with a big amount of money, one guy went as far as saying if I don't have 100K as a starting balance I shouldn't think of trading as a career.
I was really dumbfounded on what to do but after weighing my options, I decided to start with just 10$, because that's what I can afford at that moment, even though I blew the account I learnt a lot on risk management.
It's all depends on what time frame your trading in, because you don't expect a scalper to use stop loss every time he takes a trade, your risk management should be your mental stop loss that you put on your mind, and if it went against you, exit immediately, follow this rule strictly.
Secondly, pips don't matter as far as I'm concerned what matters is the amount of money you're willing to risk.
Thirdly, always buy or sell at key support or resistance level, this will help mitigate losses because when price is around this level it doesn't move haphazardly.