Thread: Risk Management- Not a SEXY topic, but the key to Profits as a Trader

Find out how learning risk management can be responsible for a 381 monthly pip gain average

When it comes to making consistent profits as a trader - risk management is the key to your success. Many new traders foolishly think that trading is all about predicting the future, but nothing could be further from the truth. No one can accurately predict the future on a consistent basis, not even Goldman Sachs.

Understanding, quantifying, and then managing risk every day you trade is precisely what it takes to be successful at trading, and pull in positive results on a consistent basis.

You must measure risk against probability and only this will turn the overwhelming odds against you around... Professional traders are no better at predicting the future than anyone else. But they are profitable because they spend 90% of their time managing risk.

If you want to avoid being one of the 90-95% of traders who lose - you should embrace risk management with both arms. If you do not, then frankly you stand little chance of ever reaching long-term profitability.

Oh yes, I can hear the groans already...

Listen, you want to make money right? Risk management is not a sexy topic like “score big and make so much money you'll be able to retire in a week”... but it will keep you in the game long enough to learn how to trade properly.

Often the most essential things are not the most popular... But if you want to get to the sexy making money part you must first learn the risk management part, as you cannot run without first learning how to walk.

Without proper risk management you will likely lose all of your trading capital soon enough...

The odds are heavily against you... but with the right risk management plan and implementation, you will be able to identify high probability trading opportunities while keeping your risk managed at all times.

Find out more about risk management

The heading says it all - risk management is not sexy and forex traders tend to bury their heads in the sand and pretend that it will go away.