Taking risk is essential

Discussion in 'Forex' started by FX_Gigi, Aug 31, 2013.

  1. FX_Gigi

    FX_Gigi

    What do you think that forex trading offers risk and that is essential?
     
  2. Sergio77

    Sergio77

    Your question is not clear because of bad English probably (even worse than mine :) )

    All types of trading involve risk. You have complete control over your risk. If you want no risk you stay flat for example.
     
  3. slacker

    slacker

    Linda Radshke, I think, had a quote that I like

    "You determine the risk; the market determines the profit..."

    Of course, inaction by the trader is also a way to determine risk.

    If you cannot identify and manage the risk then stay on the sidelines.
     
  4. Don't forget the risk for which there is no control over.
     
    • risk.png
      File size:
      20.7 KB
      Views:
      123
  5. Redneck

    Redneck

  6. Redneck

    Redneck

  7. In Forex trading risk is rewarding also but we have to take risk after proper analysis so that we will be able to generate the reasonable profit from risky Forex market.
     
  8. john12892

    john12892

    I've been testing a new strategy in forex called position sizing.

    If you aren't sure it's basically risking 1-2% acct equity at a time but putting a lot of trades throughout the day. With a limit of (for example) of 30pips and a stop loss of 15, you can profit while having more losing trades than winning.

    Lets say you made 10 trades in a day and 6 were losing trades.
    6losing trades* 15 = 90pips lost
    4 winning trades * 30 pips = 120 pips.
    120pips gained - 90 pips lost= 30 pips gain
    Therefore you made 30 pips while only getting 40% of your trades correctly, and only risking tiny amount.

    I think this really minimizes the risk, especially taking out that emotional "I hope I'm right!" idea in the back of your mind every time you enter a trade. Although picking winner is important no one can expect to be right all the time.

    As I said I am testing this idea. I picked it up from Dr. Van Tharp, hes got a few books on amazon that are pretty revolutionary in terms of the mentality and actions of the trader.

    If anyone has any questions or criticisms go for it, but I think in terms of risk to reward this is a great concept.
     
  9. Yea of course risk management is very important for every trader because Forex market is although profitable but also it is risky too much so trader should developed their trading skills to get positive results.
     
    #10     Sep 24, 2013