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What is Risk Management ?
Risk Management is The Analysis and identification For Make Decision of uncertain Investment at Forex Market ,By Using Risk Management We can Control Our Investment Risk and Control Our Profit ,So Risk Management not only Important But also Require For our every Entry.By using Risk Management We can Control Our Live Trading Risk At Forex Market For Safety of Our Trading Fund But Without Risk Management We Are Here Like Gambler ,Our Trading Behave to Market Unjustified,So We Face Lose,Always Remember ,Risk Management reduce Our Trading risk .
Why Risk management?
The main objective Of Risk Management are Below :
Minimize Trading Risk.
For Protect Our Trading Account and Make Money Long Time.
Identify Future Trading risk .
Identify Future Trading Problem.
For Long Term Trading plan.
To Ensure That Risks are identified .
Improved Our Trading Portfolio .
For Stable Trading Career At Forex Market .
Risk Management Process Method
Risk Management Apply For Minimize Trading risk ,Risk Management identify Trading risk and Predict Future impact of all of our Trading.
First_We Should Be Review Our Previous Trading record And Analysis What Type Problem was found and W…
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VictoriaVika avatar

Thanks for your article, there is many useful information, really good strategy and detail explanation. Well done! Go ahead! :)

brilliant avatar
brilliant 25 Jan.

I think there is no high risk limit. but it should be calculated carefully and accepted.

orto leave comments
In this article, we will review and evaluate the traditional money management method in terms of the percent of our account we should be risking on each trade. Then, we will learn a money management formula that is capable of maximizing our trading system profits. We will finally give some serious considerations to be taken into account before applying this formula.
The forex traditional money management method
successful trading system must has a clear-cut rules for entries and exits, which include rules for exiting at profit targets and rules for exiting at loss targets.
When planning our trade ahead, the risk management process passes the following steps:
  1. Defining a predetermined point of exiting a losing trade according to our system rules (e.g., a stop loss under a support level 50 pips far from the entry price).
  2. Defining A predetermined portion or ratio of our account we are willing to risk on a trade. That portion varies from 1% up to an aggressive 10% (e.g., 2%).
  3. After deciding the stop loss size (50 pips) and the risk ratio (2%), we finally calculate the appropriate position size.
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slavator avatar
slavator 27 June

Very interesting. Good acticle!

xtrader360 avatar

Nice article!

ClauTrade avatar

Nice article... fantastic the video!! :D

lelipuzik avatar
lelipuzik 20 Sep.

pretty nice article

fx211pips avatar
fx211pips 23 Sep.

very insightful article, mathematics is very applicable in trading

orto leave comments
Both beginners and veteran forex traders have always been finding it difficult to manage their money in Forex trading. It is possible for anyone to land a profitable trading system, but it is not possible for everyone to maintain money management through proper discipline and strategy. Even though it is quite essential to manage money, it is something that is not quite difficult. There are different stages and aspects associated with Forex money management, and it is important to start it from the initial phase of your forex trading business that starts with opening a live trading account. The simple rule that needs to be followed here is not to put more than 2% of your money at risk. Generally, it is believed that this rule is not applicable in the beginning, but the fact is entirely the reverse. This needs to be taken into account even when a live account has not yet been opened. Take it for an example that you have traded sufficiently through a demo account and practiced a lot, and you are ready to deal through a live account with a saving of more than $15,000. Will you be opening an account with your entire saving? It is possible, but what would be your situation if you are to…
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doctortyby avatar
doctortyby 30 Oct.

Welcome to the Article Contest. Money and Risk Management are the most important aspects of Trading and Forex. You can make money from most of the strategies on the long term if you use a tight risk management and you keep a close eye on your Money Management Plan. I personally never use a Leveredge higher than 1:100. For Accounts Larger than 10.000 $ I reccomend a 1:50, 1:20 or even 1:10 Leveregde even if the Leverdge factor is not as important as the risk and Money Management (because you can set the same size for your orders with different leveredges). Keep writing and insert some charts :)

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