Forex Strategies Risk Management Simplified

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.
 

Nite

Valued Contributor
Forex trading offer opportunities for profit, but it is also known to be presenting some risks . So, it's better to learn how to manage those risks in order to ensure greater control over your profits and loses. You have to build a good trading plan, which can help you maintain discipline in the market as volatile as forex, and it can also help to make your trading easier. So, implementing set of rules and measures is necessary for effective trading.
 

Victorial

Active member
I like your analysis and I must say that I completely agree with you. You can start trading for as low as $10. Even some brokers like FBS believe you can trade with $1. That is not possible anyway but it does say that about $100 is not just the minimum amount to start trading forex.

Sometimes you will blame yourself for using a stop loss and sometimes you will be happy that you used one. Trading is just so dynamic. But the resistance and support levels are crucial in trading. I have lost count of how many times they have helped me to execute trades
 

Sotherefore

VIP Contributor
People don't really have to start trading with so much better just as you were told that you need to start with 100000 a lot of people are even starting their trade with at least $25 to $50 and they are making profit, it all depends on how you are trading and your knowledge on how to predict the market perfectly.. the only thing I will not advise anyone is that they shouldn't even think of trading on their own as a newbie. The reason is because trading sometimes is risky if you are not an experience trader to trade with high accuracy.
 

Mary Frederick

Active member
Behavior and qualities matter in Forex because forex isn’t for hot tempered people. You can compare forex with a sea so you shouldn’t involve yourself with trading without knowledge. So, you can enlarge your profit margin with knowledge. FXOpulence provides me all necessary facilities for trading.
 
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