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  1. #1
    ryancooper is offline Junior Member
    Join Date
    Mar 2018
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    1

    Default Are you sticking to your predefined risks?

    The risk is very important in Forex. You cannot trade the market without risks, you cannot invest in Forex without risks and you also cannot make money without risks. Many people say they can take risks in Forex and make money. It is how all the traders in Forex. When you are trading, you will find that not many people can stick to their predefined risks. Before you place your trades, you analyze the market, know the risks and also know if you are going to make the profit. After analyzing these, you place the trades and wait for your profit to get into your account. Not all the traders are lucky and many of them lost money.

    If you look deeper in their trading strategy, you will find that these people did not stick to their predefined trading strategy. They trade the market with their strategy but when the trends were changing and the markets were changing, they set new trading plan which changes the risk they would have taken in their trades. This new change may be small but it has a big effect on your trades. Many people do not understand this and they think changing is needed for future development of trades. It is good but you should not change your predefined risks in Forex. They were set after lots of revisions and trials and you also need to follow it. This article will tell you how you can trade the market for profit if you stick to your predefined risks.

    Discipline is to key to success
    Without having a strict discipline in the trading industry it will be almost impossible for you to become a profitable trader. Most of the novice traders are losing money due to their aggressive approach to trading. At times you might say the pro traders are making tons of money due to big lot size trade. But if you know the size of their trading account, you will understand that they are not risking more than 3-5% of their account capital. Even if you follow the copy Fx service from the professional trader, you need to follow strict trading discipline. For instance, many novice traders have blown their trading account by trading with the signal service provider. After losing few traders most of them blow their trading account. But if you follow the simple rule of money management you would have not more than 15% of account capital even after having five consecutive losing trades.

    Money management is often considered as the Holy Grail in the Forex market. You have to learn the precise art of trade management so that you can easily embrace the losing trades. Many novice traders often say risk management factors is not crucial to becoming a successful trader. But they are completely wrong. No one knows the outcome of a certain trade. So always be prepared for the losing trades and trade with the market trend.

    The predefined risks have more chance of success
    When you set a new risk in Forex and ditch the predefined risks, you do not know that you are leaving a proven risk out of your trades. Many people do not understand that and they trade the market with the new strategy. If you think your new strategy is better and it can address the market trends more successfully, try this new risk on the demo markets. The predefined strategy has more chance of success in Forex. You may find sometimes the market is going to turn against you and you will see your money but you will need a lot of patience at that time. Just stick to your predefined risks and see what happens. The market will not run against you and it does, your predefined risk strategy will save you from cleaning out your account. If you have to use a new risk at that time, you may not know how the change would affect your accounts and profits.

  2. #2
    Sobahan Ali is offline Senior Member
    Join Date
    Jan 2017
    Posts
    268

    Default

    In Fx trading as a newbie I am looking for a great source for gathering proper market principle which is very supportive to lead a comfortable trading life with certainly , many of us suggest me to trade demo account , but honestly speaking , I always feel boring when trading in demo account . but I have acquired some basic information from here about trading .

  3. #3
    GrindaK is offline Junior Member
    Join Date
    Apr 2018
    Posts
    19

    Default

    Every trader, whether he is new or experienced, always takes some risk somehow during his every trade. I also work with a risk to reward ratio which I select according to the money management plan of myself. I usually use the risk to reward ratio of 1:3 and 1:2. Thanks!

  4. #4
    Lady C. is offline Junior Member
    Join Date
    Mar 2018
    Posts
    15

    Default

    I can't risk more money than I have in my account. Even if I wanted to. That's why I keep a small amount in my account.

  5. #5
    Angel candy is offline Senior Member
    Join Date
    Mar 2016
    Posts
    332

    Default

    You may have heard that maintaining your discipline is a key aspect of trading. The best FX strategies will be suited to the individual. This means you need to consider your personality and work out the best Forex strategy to suit you.

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