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Risk Management

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Risk Management

Risk management is the management of risk inherent in trading by identifying these risks, assessing them and knowing how to control them. You can't control how much you may profit on each trade, but you can control how much you may lose. Poor risk management is one of the top reasons traders fail. Managing your risk exposure, by knowing what to do and what not to do, helps to prevent deep drawdowns or losing your trading capital. There is a variety of potential risks to take into account.

Good risk management is key to capital preservation and involves thinking about how much capital to employ, how much to risk on each trade, how many trades to make daily, weekly and monthly and what stop levels to use for each type of set-up. Also included in good risk management are what reward / risk requirements to enforce, how to employ money management, how to use a balanced portfolio and how to deal with correlations between open trades. Traders employing good risk management also consider what loss limits to set daily, weekly and monthly, how to calculate the overall expectancy of your trading strategy and how to avoid the risk of ruin.
Pato99 Pato99 (REPBTC*0.02+GNTBTC*0.02+DOGEBTC*0.02+LTCBTC*0.05+ETHBTC*0.2+DASHBTC*0.04+XMRBTC*0.03+ICNXBT*0.02+STRBTC*0.1)*XBTEUR, D,
(REPBTC*0.02+GNTBTC*0.02+DOGEBTC*0.02+LTCBTC*0.05+ETHBTC*0.2+DASHBTC*0.04+XMRBTC*0.03+ICNXBT*0.02+STRBTC*0.1)*XBTEUR: Managing a 100.000,00 EUR longterm Crypto Portfolio
Managing a 100.000,00 EUR longterm Crypto Portfolio

This is my current Portfolio of crypto coins. Seperate investments like FACTOM are not included, I only use the coins which will stay in my "retirement" portfolio and which I think are the coins with the best future development. The rates are as follows: REP 2% GNT 2% DOGE 2% LTC 5% DASH 4% ETH 20% STR 10% ICN 2% XMR 3% The chart represents the total value of ...

a.b a.b PRO EURUSD, 60,
EURUSD: RISK/REWARD vs WIN/LOSS
798 29 82
EURUSD, 60
RISK/REWARD vs WIN/LOSS

A simple matrix correlating RISK/REWARD vs WIN/LOSS ratios. What do you think? Where do you stand? 1, 2, 3 or 4?

Wave-Trader Wave-Trader PRO EURUSD, D,
EURUSD: Reasonable, safe and effective stop loss placement for Waves
3133 19 93
EURUSD, D
Reasonable, safe and effective stop loss placement for Waves

Hi fellows, In this educational post, You will learn where your stop loss is reasonable, safe and most effective and increase the rate of success. Stop placement is a professional skill. Trading without limiting losses is highly dangerous. When it comes to trading on waves and classical chart patterns then your stop loss should be there where it is safe and ...

FeroxWealth FeroxWealth AUDJPY, D,
AUDJPY: Correlation Trading - How to Trade Forex With Little to No Risk!
1365 13 19
AUDJPY, D
Correlation Trading - How to Trade Forex With Little to No Risk!

Tonight we did a live stream on YouTube offering an in-depth explanation of correlation trading. You can watch the stream back in its entirety here https://www.youtube.com/watch?v=XOtqLSprYoI Below will be a written explanation of correlation trading utilizing the AUDJPY vs. NZDJPY as the example: Correlation trading is an amazing way to add diversification to ...

Nico.Muselle Nico.Muselle MOD GBPUSD, 60,
GBPUSD: Stop Loss hunting and the whipsaw effect explained
539 0 28
GBPUSD, 60
Stop Loss hunting and the whipsaw effect explained

Regularly we see price break out after a consolidation, only to suddenly reverse and break out to the other side. Then, we continue swiftly in the direction of the initial breakout creating a "whipsaw" effect. Why is that ? In simple words, it is the smart money that attracts retail traders by pushing in one direction (mainly breakout traders) and put their stop ...

jzulueta19 jzulueta19 LTCUSDT, 60,
LTCUSDT: Determining Entry Points - Litecoin (LTC)
142 2 6
LTCUSDT, 60
Determining Entry Points - Litecoin (LTC)

Risk Management (RM) is a heavy part of trading any asset class. What amount of risk or loss are you willing to take? And how do you limit your losses? In my years of technical trading, risk can be limited by the entry point, buying close to support and selling upon the break of said support. This works both ways, up and down. Up and down you say? What does that ...

Kishore Kishore PRO EURUSD, D,
EURUSD: WHY TRADERS LOSE IN FINANCIAL MARKETS
1092 14 66
EURUSD, D
WHY TRADERS LOSE IN FINANCIAL MARKETS

Why Traders Lose In The Financial Market. Three Important Things To Know Before Trading You may be one of the traders out there, Who has lost plenty of dollars in the financial markets. So in today’s lesson we are going to check the most common trading mistakes a trader does when he starts trading. Knowledge: So the first important accept in losing in the ...

LewisGlasgow LewisGlasgow PRO GBPJPY, 60,
GBPJPY: Three Reasons Why Most Traders Fail
1257 1 92
GBPJPY, 60
Three Reasons Why Most Traders Fail

Three Reasons Why Most Traders Fail Hello traders, I'm back with another educational post after receiving a lot of positive feedback. Today I'm going to break down three reasons why most traders fail! Traders Fail?! Yes most do, it is believed over 90% of new traders fail (this is an ongoing debate) but why is that? I personally believe it comes down to ...

bgj101 bgj101 PRO EURJPY, 60,
EURJPY: HOW TO RIDE LIKE US
124 0 3
EURJPY, 60
HOW TO RIDE LIKE US

This is one method of trade/money management that we teach. This 3-position method allows you to RIDE THE WAVE....as long as its moving...................2EZ

TomHall TomHall PRO EURUSD, 60,
EURUSD: Pips vs Profit - Which Do You Focus On?
1727 19 65
EURUSD, 60
Pips vs Profit - Which Do You Focus On?

FREQUENTLY ASKED QUESTIONS Q: How much money do I put on per trade? A: I personally adjust my position size depending on the currency pair and stop loss difference to cap my loss at a maximum of 1% Q: How many pips do i look to achieve Daily / Weekly / Monthly. A: I never set percentage or pip goals, this can cause impulsive emotional behaviour which forces you ...

Tradewonk Tradewonk GBPUSD, D,
GBPUSD: Maximum Drawdown
1819 14 148
GBPUSD, D
Maximum Drawdown

Drawdowns on your account are part of trading but if you establish a trading plan then it will enable you to survive these losses and not wipe out your account.

LewisGlasgow LewisGlasgow PRO GBPUSD, 60,
GBPUSD: The Power of Compound Interest
991 18 69
GBPUSD, 60
The Power of Compound Interest

“Compound interest is the eighth wonder of the world. He who understands it, earns it... He who doesn’t... Pays it”. The idea of compound interest is simple, use your profit to make more profit instead of spending it... You can do this whilst making small regular withdrawals! BUT Too many traders try to get-rich-quick and in turn blow their trading account. ...

Wave-Trader Wave-Trader PRO EURUSD, 240,
EURUSD: Entry and Stop placement on Trend continuation patterns
4980 41 149
EURUSD, 240
Entry and Stop placement on Trend continuation patterns

Hi fellows, Many people was requesting entry and stop placement on trend continuation patterns so i decided to post this stuff so that they can understand how we place trade based on trend continuation patterns Using following trading strategies These trading strategies have a one condition and that is there must be an impulse before placing trade on trend ...

Mutondi Mutondi BTCUSD, 240,
BTCUSD: To Indicator or Not To Indicator?  - Eduseries Week 2
152 2 13
BTCUSD, 240
To Indicator or Not To Indicator? - Eduseries Week 2

"I trade like I bath" - the words of a self-created guru trader who wanted to convince me to join his "Premium Group" a while back. Although by his very nature the gentleman was a scammer and made more money through "teaching", those words lead me on a path which to a greater level of certainty in my own trading and analysis. (By the time we had that interaction ...

ICmarkets ICmarkets PRO XAUUSD, 240,
XAUUSD: What is Margin?
128 0 8
XAUUSD, 240
What is Margin?

What is Margin?

HJQI HJQI USDTHB, D,
USDTHB: The best trading time for each pair of currencies
541 2 43
USDTHB, D
The best trading time for each pair of currencies

The foreign exchange market operates around the clock, so it is impossible for a trader to track every market and seize every opportunity. In forex trading, time is everything. In order to design an efficient and timely investment strategy, it is necessary to record the market for 24 consecutive hours of trading, so that traders in their own trading hours, to ...

LewisGlasgow LewisGlasgow PRO GBPJPY, 60,
GBPJPY: Tips for Growing a Small Trading Account
3938 68 231
GBPJPY, 60
Tips for Growing a Small Trading Account

Tips for Growing a Small Trading Account Hello traders, I'm back with another educational post after receiving a lot of positive feedback. Today I'm going to provide you with five tips for growing a small trading account! 1. Define your why As you all know 90% of traders fail, it's a well-known fact and it's the main reason why I provide so much free content... ...

Tradewonk Tradewonk EURGBP, 240,
EURGBP: When Not To Take A Trade
2498 33 165
EURGBP, 240
When Not To Take A Trade

Every sunday i watch all pairs, draw the strongest fresh supply & demand zones and set the alarm. But do i always take the trade when the price hit the zone?

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