Hunny Gee Posted October 24, 2011 Report Share Posted October 24, 2011 Forex Risk Management – Whats your Risk % per trade? Forex Risk Management FOREX RISK MANAGEMENT Whats your risk % per trade? Or should i say, what’s your risk appetite? To be a successful forex trader. You will need to have a proper money management system. It starts with identifying what level of risk % per trade will you risk. As a guide, a safe and good risk percentage will be from 1% – 3%. Anything higher than 3% will be relatively risky. Why is this so. If you understand, the forex market can do anything. Even if you are sure this is the MOST perfect setup. It MAY NOT end up the way you expected it to be. Why? Forex Risk Management – Whats your Risk % per trade? Forex Risk Management First, you must understand that anything can happen in the forex market. Just for example, even if it is the most perfect setup. If a major institution pumps in a large sum of money at that period of time. It can change the direction of the market for a short time frame. And when the retail investors see the market moving in the direction stipulated by the major institution, they will then follow suit and enter the same way. WHICH causes the movements in the market. But of course, this doesn’t happen always. What i’m saying is, anything can happen in the forex market. So even if you are the best forex trader in the world. You will not have a 100% winning rate as well. You will still lose as the market can do anything. Which is why, it is not wise to have a high risk per trade. Forex Risk Management – For example, if a trader risk 10% per trade. And a series of unfortunate events happen to him, (maybe it’s a distraction, maybe there’s an earthquake etc) As a result, he made a series of 5 losing trades. He would have wipe of 50% +- of his trading capital because he risked 10% per trade. And with just 50% left, it will be hard for him to make back his loss. So if you see what i meant. Forex Risk Management – For example, if you risk 2% per trade. With a series of 5 losing trades. You would only lose 10%+- of your capital. Which is not to bad. With a good trading system, we can easily make back the money loss. Forex Risk Management – Whats your Risk % per trade? Forex Risk Management But here comes the big question. What is your risk appetite? You see, there is absolutely no point into asking you to risk 1% per trade. Forex Risk Management – Eg. Capital $5000 Risk of 1% = $50 per trade. If at the back of your mind, you do feel that $50 per trade is too little. Then you will most likely find and trade even more trades that you usually should – in order to make more money. Right? Therefore, the correct way to set your risk % per trade varies with different individuals. You must ask yourself. Forex Risk Management – Eg. Will you be satisfied with $50 per trade or $100 per trade or $150 per trade based on the capital of $5000 Once you got an answer, you got your risk percentage. Forex Risk Management – Whats your Risk % per trade? Forex Risk Management Remember, 1) Your risk percentage cannot be too high. As mention a good gauge is 1% – 3%. 2) Your risk percentage must meet your risk appetite. There is no point in risking 1% if you find the amount too little and does not satisfy your hunger. So there you go. Once you have set and decided on your risk % per trade. STICK FIRMLY TO IT! For example, in a series of trades. You cannot have eg. 1% on 5 trades, then 3% on 5 trades etc. Because if you play it this way, and what if you make money on the 5 trades with 1% risked, and lose money on the 5 trades with 3% risked. (which usually happens!) YOU WILL LOSE MONEY! Therefore, stick firmly to the risk percentage per trade which you have set. Eg. If you set 2% risk per trade. From now on, every trade you take – You will risk 2% per trade. NOTHING MORE, NOTHING LESS. This way, you will be consistent and you are on the right track to success. This is part 1 of the 2 series of Forex Risk Management. Stay tuned for the 2nd part. Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies | system that i personally use to be consistently profitable. See you on the other side my friend, Asia Forex Mentor Ezekiel Chew Asia #1 Forex Mentor www.asiaforexmentor.com Link to comment Share on other sites More sharing options...
Hunny Gee Posted November 10, 2012 Author Report Share Posted November 10, 2012 Asia Forex Mentor forex course is now FREE! A complete professional forex trading system that even newbies can apply instantly. Link to comment Share on other sites More sharing options...
mitul Posted September 15, 2015 Report Share Posted September 15, 2015 Well I think that each and every pair have their favorable timings and thus you have to keep record of them and you can earn easily or you can rely on brokers. I have earned a lot through trading with my current broker. Link to comment Share on other sites More sharing options...
Kapello Posted September 23, 2015 Report Share Posted September 23, 2015 To my mind, the best time for trading is during American trading session. All currency pairs are most volatile at this time. I usually read freshforex forecasts before trading and enter the market at this time. Link to comment Share on other sites More sharing options...
pradegxs Posted October 12, 2015 Report Share Posted October 12, 2015 I trade on cross of London and NY session sometimes trade on Asian too if I need good liquidity on JPY pairs. Only liquid markets can be profitable so keep that in mind. Link to comment Share on other sites More sharing options...
orni308 Posted October 14, 2015 Report Share Posted October 14, 2015 It depends on the locality of the traders, a trader in a sia would be more comfortable in trading in asian sessions, rather than any other. Link to comment Share on other sites More sharing options...
Guest gaban Posted December 11, 2015 Report Share Posted December 11, 2015 i think any trader target is to make a constant profit and avoid any change that can make them lose, so risk management is very important, thanks for sharing. Link to comment Share on other sites More sharing options...
fxapex Posted December 12, 2015 Report Share Posted December 12, 2015 Choosing trading hour depends on the comfort of the broker , and he should choose a time in which he can trade without interference. Link to comment Share on other sites More sharing options...
Guest gaban Posted December 28, 2015 Report Share Posted December 28, 2015 have a good preparation before do forex trading is very needed to do. and have good RM is a good preparation to minimize ur loss. just always care about that will make u getting better at forex trading. Link to comment Share on other sites More sharing options...
jinjiren Posted December 31, 2015 Report Share Posted December 31, 2015 Actually I don't know what's the best time to trade, but I think when important news and events happening, that's the worst time to trade, everyone can know that so you have very little opportunity to make profit. Link to comment Share on other sites More sharing options...
uncle gober Posted January 6, 2016 Report Share Posted January 6, 2016 in my opinion, the best time to trade is when the market overlap between london to new york. because of news that has a considerable influence on the release would normally during these hours so that we can follow the trend for profits Link to comment Share on other sites More sharing options...
Fx Mental Posted February 18, 2016 Report Share Posted February 18, 2016 Generally, we the traders select our trading hours according to our trading experience. In my trading career, I am very lucky to select Trade12 as my trading broker from where I am able to trade at all times because of only one pip trading spreads. By means of this lowest trading spreads, I am able to make profit with certainly by using any kinds of trading strategies. So, my trading life is very much profitable. Link to comment Share on other sites More sharing options...
jinjiren Posted February 25, 2016 Report Share Posted February 25, 2016 I think best time is the transaction between European and USA session, I have tried this before. Link to comment Share on other sites More sharing options...
monalipa Posted March 1, 2016 Report Share Posted March 1, 2016 I do think this depends on your broker, for example with my broker http://www.alpari.com I do think be best time is around 8 GMT to like 16GMT same goes for Instaforex and Liteforex also. Link to comment Share on other sites More sharing options...
Adrian_1991 Posted March 24, 2016 Report Share Posted March 24, 2016 Europe and USA market timeframe I think is the most traded. Asia is sometimes good aswell but is way to late for my time (gmt +2) :) Link to comment Share on other sites More sharing options...
HoltenFord Posted March 30, 2016 Report Share Posted March 30, 2016 It depends on the comfort of the broker , and he should choose a time in which he can trade without interference. Tradorax reviews Link to comment Share on other sites More sharing options...
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