Planning Trades to Control Risk

[mlawson71]

Trading with a plan is necessary - obviously (or at least it should be obvious) you can't just enter the market and hope you luck out, you have to have contingency plans, but on the other hand a trader should be adaptable, i.e. should be ready to change the plan if they see it's not working. Blindly following plans can also cause trouble.

As for the person trading coffee described in the first post - that guy was very unethical, dishonest and irresponsible.

 

[radex78]

Big risk taker in trading is only will makng us in greedy and this not safe trading anymore, because once mistake can causing big loss while our emotiion usually will being panic if faced with big loss floating in large number of money, trading with big risk taker will decreasing free margin quickly and this harmful account.

 

[Callagy20]

Forex is about making money. But you can only make money when you still have a free margin to trade with hence the need for risk management and protecting your capital. I will say new traders should get over the excitement of wanting to make big quick money and avoid trading big lots.

 

[radex78]

Risk management is very important for trader, because forex market sometime move in unpredictable and loss sometime inevitable, and how to making good profit from forex trading gas trader they must trade with follow the trend, without good analysis will often getting loss in trades

 

[Callagy20]

You are correct. One big risk management I would advise traders to watch out for is moderates leverages. Leverages are really tempting as they help you open big trades with small capital but it is equally dangerous. I will simply advise a leverage ratio as moderate as 3:1. You may feel it is small, but most importantly it is safe to use!

Thanks!
This is true. Leverages are very attractive. I would love to trade bigger trade sizes with just a small capital by using big leverage ratio. But this is dangerous as a losing a trade with heavy leverage can easily wipe off your margin. I also think moderate leverage ratio as 3:1 is good enough and safe too.

 

[radex78]

Thanks!
This is true. Leverages are very attractive. I would love to trade bigger trade sizes with just a small capital by using big leverage ratio. But this is dangerous as a losing a trade with heavy leverage can easily wipe off your margin. I also think moderate leverage ratio as 3:1 is good enough and safe too.

Yes leverage is very atractive, which we can use leveage that ofered by our broker, like as my broker now also ofer high leveage 1:1000 whih with high leverage to open any lot size only required smalest margin, but this also double risk if compared with low leverage because high leverage if get margin call hence only small money left in account

 

[Callagy20]

Leverages are good and bad;all depending on how the trader uses it. A moderate leverage ratio works best as an excessive one could blow your account and bring in the margin call.

 

[AbbottB]

we are looking to get a good income in our trading then we must try to focus on the analysis because this alone can save our accounts

 

[radex78]

we are looking to get a good income in our trading then we must try to focus on the analysis because this alone can save our accounts

Ye we need to focus and concentration during trades to monitring the market, especially if we play as scalping trader because will open and closed order only at short time, plan trading will help to managed our money in account, market forex very dynamic if without focus hence might will missing opportunity

 

[Ary Barroso]

Well; I started my trading with various risk reward ratios but right now I’m have a fixed plan on it. Currently I’m not taking more than 2% risk ratio in my per trade position.

 

[Ulacan]

Planning trades is very important for successful trading. The mistake that many people make, not just new traders but also regular traders, is that they trade with ego and fail to plan. There are two results, you either win or lose. So you must plan for both as you endeavor to increase your wins are stop your losses

 

[37riched]

It is important to plan your trades well in order to control your risks. Planning will let you know exactly when to enter and exit a trade and your stop losses. This will help ensure that you dont risk more than you can actually afford to lose. Without a trading plan, you can not stay on track

 

[Ary Barroso]

It is important to plan your trades well in order to control your risks. Planning will let you know exactly when to enter and exit a trade and your stop losses. This will help ensure that you dont risk more than you can actually afford to lose. Without a trading plan, you can not stay on track

Select entry & exit point is too crucial; in this case; support/resistant levels help me a lot! But, I don’t use any technical tool on my trading chart.

 

[Uaredaty]

This is interesting way of trading. If you are not using technical tool to determine entry and exit points, can you share with us what other technique you use in order to determine these points?

 

[muktiseo]

. You should be trading using capital that you can afford to lose; avoid overstretching yourself. As effective risk and money management is absolutely crucial to successful options trading, it's a subject that you really need to understand. On this page we look at some of the methods you can, and should, use for managing your risk exposure and controlling your budget.

• Using Your Trading Plan
• Managing Risk with Options Spreads
• Managing Risk through Diversification
• Managing Risk using Options Orders
• Money Management & Position Sizing

 

[37riched]

Risk management is very important for one to engage in successful trading. It helps you protect what you have already made and limit your losses. A thorough trading plan is mandatory to help you manage your risks, but without trading discipline, you can not follow your plan strictly and you'll still end up failing

 

[Baazex]

When you are trading with actual money a trader would never repeat mistakes again because nobody wants to loose money risk management is vital in trading planning and strategy