What is your risk management plan?

[iMusingKiMi]

If we will take less than 5% of the Trading funds at any given time then we will have ample amount of trading opportunities with us.

And we must always realize this fact that in the trading business it is the opportunities that count

Have you ever got caught in 10 long streaks of losses trade? If you does, then you must have very good control of your emotions on trading with such MM. Believe me, it happens even with professional traders, maybe not 10 or even more. You have to get ready for a DD maybe 40% if you are trading with 2.5% each trade.

 

[Froso@FXNET]

Know your bottom when you are buying, never guess the top.
Know your top when you are selling, never guess the bottom.
Forget about Risk:Rewards, that's text book trading.

Exactly what you say, because this is an important thing. If you can predict the bottom or top, then do the order, then you can make a profit. Then for risk limits and targets need to be set.

 

[Froso@FXNET]

Again, in terms of risk management is very important to note. The trader must learn from scratch. Do not let a major loss in trading for forgetting to risk management. Furthermore stayed consistent in carrying it.

 

[iMusingKiMi]

Again, in terms of risk management is very important to note. The trader must learn from scratch. Do not let a major loss in trading for forgetting to risk management. Furthermore stayed consistent in carrying it.

Unfortunately when speak about discipline, it is a much more difficult to learn if compare to any system or strategies.

 

[EURUSD]

Unfortunately when speak about discipline, it is a much more difficult to learn if compare to any system or strategies.

I think so. Discipline is more difficult in implementation like mostly people imagination because discipline should stick on the rule even if you're still experiencing loss many times in a row. One system or strategy could be different result when the trader who used it is different because different trader could be different in psychology control. Discipline is something which we need to make you capable to manage pofit and loss well.

 

[iMusingKiMi]

I think so. Discipline is more difficult in implementation like mostly people imagination because discipline should stick on the rule even if you're still experiencing loss many times in a row. One system or strategy could be different result when the trader who used it is different because different trader could be different in psychology control. Discipline is something which we need to make you capable to manage pofit and loss well.

Indeed discipline and emotion can ruin any either trader, system or any robust systems. One most happen often is over trading.

 

[Froso@FXNET]

Cut losses early, let profits run.

It seems pretty easy to say, but it requires a hard struggle. So here the trader can adjust in trend. Do not let an error in trading, ie without regard to money management and risk management. If two things are considered, then the trader can achieve a steady income.

 

[iMusingKiMi]

It seems pretty easy to say, but it requires a hard struggle. So here the trader can adjust in trend. Do not let an error in trading, ie without regard to money management and risk management. If two things are considered, then the trader can achieve a steady income.

Absolutely agree on this. You know why or what in their mind? They fear their profit will give back, therefore they usually will cut profit. A single words "FEAR". But when it come to a loss position, what comes into their mind? They will think that they have no chance to gain it back if cut their losses immediately. They simply forget trading are not actually one or two day business.

 

[Froso@FXNET]

Absolutely agree on this. You know why or what in their mind? They fear their profit will give back, therefore they usually will cut profit. A single words "FEAR". But when it come to a loss position, what comes into their mind? They will think that they have no chance to gain it back if cut their losses immediately. They simply forget trading are not actually one or two day business.

Of course, brother. It is still quite common among traders. I also have experienced, but still striving for success. Until now I still continue to strive for success in trading. Start up capital of small and continue to strive in order to reap a profit of millions of USD.

 

[EURUSD]

Indeed discipline and emotion can ruin any either trader, system or any robust systems. One most happen often is over trading.

If there is proper trading plan then you could trade without any worry no matter condition of market same with your expectation or not because there is risk management which will limit maximum loss which can happen when your analysis was wrong. Risk management must be supported with your discipline to stick on the rule so you can control amount of loss which you can afford to take.