How to Risk Management of Forex Trading – Hello friends at This time, I will return to the administrator who provides very interesting information on How to Risk Management of Forex Trading.

For more information, see the following articles. The basic thing you need to understand is risk management, which is the key to success in learning forex trading.

You can claim to have a very strong trading strategy or use good analytics, but all of this won’t help if implemented without risk management.

Without this risk management, forex trading will not have very beneficial results in the near future. There is no accurate science that can be obtained quickly and accurately to predict price fluctuations in the forex market with 100% accuracy.

This is the best bet that there is a forecast error in the system and you may lose your forex trading position.

Forex Trading Risk Management

Risk management is the most important thing in forex trading. As is well known, forex trading carries a fairly high level of risk.However, if you can control this risk (potential loss), this online business will be very profitable compared to other online businesses.

Unfortunately, few traders are aware of the importance of risk management, especially for beginners. Usually, these novice traders tend to click the “Buy” or “Sell” button immediately after creating an account and making a deposit, without prior analysis, not to mention risk management.

Therefore, when learning forex trading, you need to learn proper risk management attitudes. Did the seller learn how to trade in the forex market to effectively manage risk management? The risk management steps that beginners need to understand are:

Using Cold Money When Trading Forex

If you are an inexperienced trader using cold money when trading forex, you should use cold money. The use of cold money is due to the fact that it is not always possible to withdraw or withdraw the funds used for trading.

Therefore, if you force a trade at the wrong time, you will suffer a loss.Simply put, if you sell when the price falls and buy when the price rises, you will definitely lose.

So it is highly recommended to use cold silver.Information: Cold money is money that should not be used for sudden or urgent needs.

This means you don’t need money for day-to-day needs, insurance, emergency funds, parental allowance, installments and the like.

In addition, since borrowed money is not cold money, dealing with borrowed money is highly recommended. Therefore, all funds used in a transaction are for that transaction, not for any other purpose.

The Stop-Loss Order Must Be Set Not Too High

A stop loss is an order that closes a public trade to limit the risk of loss. For example, you buy 1 lot of AUD/USD at a price of 0.81400 and start trading in the Forex market.Of course, you need a strategy to place a Stop Loss at 0.81000 to limit your trading risk.

So if the price drops to 0.81000, the trade will close at 0.81000 and you will lose $400. You have a legal obligation to limit your risk in Forex trading.

The point is to minimize the chance of a Stop Loss “stratification” as a result of a price action. This in itself is a Stop Loss placement method.

Place the stop loss a few pips above thekey resistor (for short) or below the support key (for long).

Technically there is a way to teach a placement of around 100200 (for a grade with 5 decimal places). There are several ways to determine key resistance and support levels, so you should familiarize yourself with them.

Making a Good Trading Plan

For Forex traders, a trading plan is essential to achieve consistent trading results. Discipline is one of the success factors of Forex trading.

If the trading plan is accurate and objective, traders may be subject to disciplinary action in accordance with the rules set out in the plan.

Traders therefore plan their trades and take responsibility for themselves. If Forex trading results do not match expectations or the market price moves in the wrong direction, traders can take immediate action on their trading account without hesitation or panic.

Take Profit

Traders need to know how to determine the right take profit to avoid becoming emotional later. Below are some of the ways to explore to determine how to close a position for optimal profit.


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