Employ Risk Management Tools in Trading!

[Faelar]

Risk management is one of the fundamental things, both in trading and in any business. By correctly calculating risks, you can avoid exploding your accounts and are not afraid to lose your capital. If you are not a risk trader, I advise you to trade no more than 2% in one trade. Many people think that this is very little, but only this way, you can minimize your losses in a failed trade.

 

[Colin Lewis]

2% seems to be everyone's top risk capital. I have always tried to stay in these boundaries. Of course if trading to make money 2% can be great but you have to have a decent bank to translate that into a decent wage

 

[Granigamand]

It seems to me that sometimes you have to lose in order to understand what to do next and how to avoid it in the future.

 

[pashaev]

Balancing risks is the most important thing in a trading system.

 

[Anakelv]

We ourselves often increase the risks because we want to make a bigger profit, because we are tired of constant tension, because we can't find the best solution.
But with experience, it goes away and you start to work with less fuss and higher efficiency.

 

[downtrend]

One tip from my side is to never use grid positions because it will destroy your risk management and you will eventually blow your account. So use only fix percentage on a single trade and it will keep you relax.

 

[Ledner]

Risk management is very key for the success of every trader. It is mandatory for a trader to employ risk management strategies in a way that can increase profits and reduce losses. Stop loss is the most common and is very helpful. Never risk more than you can afford to lose

Totally agree!

 

[Vivaan Jua]

One tip from my side is to never use grid positions because it will destroy your risk management and you will eventually blow your account. So use only fix percentage on a single trade and it will keep you relax.

No way to ignore your opinion; I think having a fixed rule can be effective like 0.25% or 0.5% risk ratios on per trade position!

 

[Stoic]

the main rule of risk management is a positive mathematical expectation. the losses per position should not exceed the expected profit.

 

[fxoday]

the main rule of risk management is a positive mathematical expectation. the losses per position should not exceed the expected profit.

Traders can use the risk-reward ratio to plan risk and reward in trading, traders maybe use a 1:1 risk-reward ratio as a minimum ratio, or use 1:2 risk-reward ratio. etc.