Never risk more than 3% of my capital any trading day. This is the key to to keep funds available for next trading day.
How do you manage your capital?
- Thread starter Rambo35
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I think managing your capital is something every trader should take seriously. One rule I usually apply as regards trading risk is the 1-3% of my trading capital per trade. A lot of rather conservative traders or possibly those with big money favour the 1% while more adventurous type favour the 3%. This way you could engage in multiple trading without blowing your account.
I had very simple strategy to manage my capital . I trade with just 1% risk in trading . Use stop loss at proper pips. Not expect high profits . Try to get small profits. Not put my account in danger with high leverage. So I can easily manage capital during trading.
In my opnion how to manage money in forex business is we must always trade with risk management and money management, but also we must learning how to analyze the trend market to making better skill to determine accurate analysis, if we already getting more than eighty percent accurate analysis, it will already become proiftable trader.
I have seen many of the traders who are making losses in such types of trades and that is why they have to learn how they can manage the risks in their trading and thus can improve their trading in general
Learn to manage the risk is important step in forex business, because risk also as part in trading, not always we can making accurate analysis, and sometime trend market moves in dyanmic and upredicatble without risk management will harmful account if often making mistkae in analysis.I have seen many of the traders who are making losses in such types of trades and that is why they have to learn how they can manage the risks in their trading and thus can improve their trading in general
So what kind of trading can you suggest us to use? Maybe you can some suggestions on risk management?
ALwyas keep safe trading with smallest lot size, it will monimize the risk in every pips movement, with smallest lot sizealso will making more cool in trading and not in high tension, and we can learn how to put stop loss according our experience adjusted with risk management plan
Percentages are of no use in forex trading. All you need to do is to keep a fix dollar amount to be risked on every trade you make. In this way you will limit your loss to that fix amount on each and every trade.
im bad at maaging my capital lol, thats why i lost track of how much investment i have and how much profit, i ave tendencies to withdraw the money and deposit with out keeping tabs at times, depending on how urgent i need it. but its still working fine for me, and i wont recommend it.
I manage my trading account by making it a rule to open a trade with only 2% of my account; also I trade with a very low leverage. Taking to the fact that traders are allowed a leverage of up to 1:500 on the Profitforex Platform, I make sure that I maintain a leverage of just 1:50 on my trades.
Successful forex trading is not just about multiplying your capital aggressively, you must still be able to protect your capital first. This involves using good risk management techniques. Most times I use trailing stop losses and prefer trading fixed spreads.
This is why I use SL in my every single trade position. Besides, my money management plan helps me a lot.
For sure, capital management includes various aspects.
First of all, just as it was mentioned above, you should always use SL.
Next important thing is to pay attention to the ratios: the win rate and the risk-reward ratio. Both of them define whethter the strategy would be profitable or not. To find out the win rate of the strategy or maximum drawdown you can bactest your strategy on historical data (with the help of Tradingview build-in tester or Forex Tester). As the result of the backtesting, you will get the entire data on the perfromance of the strategy to be able to find out whether it will be profitable in long-term perspective.
First of all, just as it was mentioned above, you should always use SL.
Next important thing is to pay attention to the ratios: the win rate and the risk-reward ratio. Both of them define whethter the strategy would be profitable or not. To find out the win rate of the strategy or maximum drawdown you can bactest your strategy on historical data (with the help of Tradingview build-in tester or Forex Tester). As the result of the backtesting, you will get the entire data on the perfromance of the strategy to be able to find out whether it will be profitable in long-term perspective.
In order to manage your capital .the first thing a professional should do is to set his daily or weekly or monthly target.and then he should trade according to his target.what i suggest is to set daily target because this is the easy and secure way to earn from forex.A professional trader opens a trade in the forex market only when the time is right and when he earn the targeted amount he close the trade and step out of the forex market .that is how you can trade forex securely .
Firstly, anything that I have deposited, I ensure to withdraw, that way no deposited capital is lost. I then ensure that a single trade does not take up more than 5% of my entire balance. Not being afraid to take a loss is also important and not to chase losses.
Everyone has his own way to manage his capital but its very major thing that how you manage your capital without facing loss .
I do manage my capital by acheiving my daily target of profit and once i have acheived that target i do not open any trade for that day .and before opening any trade i do analyse the market with one of my best tolls and then i enter in the market .
I do manage my capital by acheiving my daily target of profit and once i have acheived that target i do not open any trade for that day .and before opening any trade i do analyse the market with one of my best tolls and then i enter in the market .
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