I risk not more than 1-2% of my capital on the trade and when I am not very sure, I keep my lot size/leverage small.
How do you manage risk in forex trading?
- Thread starter pawan_p
- Start date
- Watchers 23
-
- Tags
- forex trading trading
Another good thing would be to put stop-loss orders for every trade. It’s not about how much you are risking, but the trades you run should not be left unchecked if the market moves against you.
I usually make around 3-5 trades a day, but it depends on the market conditions and clarity of setups.
yeah for sure. thats definitely the best move U can pull. it all depends on whats goin on in the market and how clear the setups are.
to avoid risks feel like you are in the shop - you have only 50$ to spend - that's your budget, no more
I manage risk by using stop-loss orders, risking only 1-2% per trade, and avoiding over-leverage. Diversifying pairs and sticking to a trading plan also helps minimize losses.
my trade size, stoploss and profit targets will vary depending on the situation........
there seems to be quite a divide over using trailing stops...... i'm not blind to the weaknesses using them, but still most my trades are taken out by trailing stops......
as for using trailing stops, it varies with platform.....
with metatrader, the sky is the limit...... if you can think it you can code it so there is no limit in the numbers of ways to manage risk..... infinite......
if using topstepx, they have a minimum type panel where you can put in trailing stops.....
if using tradeovate, it gets more interesting..... more options...... here you can trail at points along the way..... you can save your presets......
an example would be, once your trade was 10 points into the money begin trailing 5 points away...... another could be once your 100 points in the money begin trailing 70 points back.....
those values of course are chosen by you.....
for instance, using a single trade micro mnqh25 set to begin trailing at 20 points and trail 10 points...... once it begins to trail, you are risking 50% of your current profit..... 20$ which is 50%..... that percentage is reduced as the trade continues.......... once it's gone 100 points more, your only risking 10%..... 90% is locked it, hopefully....
that manner of managing risk is best suited to volatile fast moving markets..... in seconds or minutes, 90% can be locked in......
such as news or market opens.....h
//------
//-----
//------
there seems to be quite a divide over using trailing stops...... i'm not blind to the weaknesses using them, but still most my trades are taken out by trailing stops......
as for using trailing stops, it varies with platform.....
with metatrader, the sky is the limit...... if you can think it you can code it so there is no limit in the numbers of ways to manage risk..... infinite......
if using topstepx, they have a minimum type panel where you can put in trailing stops.....
if using tradeovate, it gets more interesting..... more options...... here you can trail at points along the way..... you can save your presets......
an example would be, once your trade was 10 points into the money begin trailing 5 points away...... another could be once your 100 points in the money begin trailing 70 points back.....
those values of course are chosen by you.....
for instance, using a single trade micro mnqh25 set to begin trailing at 20 points and trail 10 points...... once it begins to trail, you are risking 50% of your current profit..... 20$ which is 50%..... that percentage is reduced as the trade continues.......... once it's gone 100 points more, your only risking 10%..... 90% is locked it, hopefully....
that manner of managing risk is best suited to volatile fast moving markets..... in seconds or minutes, 90% can be locked in......
such as news or market opens.....h
//------
//-----
//------
Last edited:
Similar threads
