Whats your Risk percentage per trade? 552

Whats your Risk percentage per trade?

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Whats your Risk percentage per trade?

Post by asiaforexmentor on Mon 24 Oct 2011, 14:21

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
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Re: Whats your Risk percentage per trade?

Post by phoenix777 on Mon 24 Oct 2011, 17:56

ini budak promote kao kao....mau buang kah? [You must be registered and logged in to see this image.] [You must be registered and logged in to see this image.] [You must be registered and logged in to see this image.] [You must be registered and logged in to see this image.] [You must be registered and logged in to see this image.]

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Re: Whats your Risk percentage per trade?

Post by inQic on Mon 24 Oct 2011, 18:48

spammer ? bot ?
Think

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Re: Whats your Risk percentage per trade?

Post by ESH on Mon 24 Oct 2011, 19:09

phoenix wrote:ini budak promote kao kao....mau buang kah? [You must be registered and logged in to see this image.] [You must be registered and logged in to see this image.] [You must be registered and logged in to see this image.] [You must be registered and logged in to see this image.] [You must be registered and logged in to see this image.]

agreed

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Re: Whats your Risk percentage per trade?

Post by aam on Tue 25 Oct 2011, 03:09

if really care about risk no play forex lor, forex 10 gamble 9.9 kalah one, mean nobody win unless you buy & hold, which mean at least got >10million $$ baru got little chance or else = donation to the rich onli lei

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Re: Whats your Risk percentage per trade?

Post by aam on Tue 25 Oct 2011, 03:10

i got few frens last year play forex now diam diam lei Rofl

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Re: Whats your Risk percentage per trade?

Post by aam on Tue 25 Oct 2011, 03:12

got money open a forex saving account with bank then save RMB yen then sleep mar ok dy no need forex masterlah, forex tai kor lah, forex bomoh lah

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Re: Whats your Risk percentage per trade?

Post by phoenix777 on Tue 25 Oct 2011, 03:14

AbuAnakMajid81 wrote:if really care about risk no play forex lor, forex 10 gamble 9.9 kalah one, mean nobody win unless you buy & hold, which mean at least got >10million $$ baru got little chance or else = donation to the rich onli lei

wah reall tht hard wor [You must be registered and logged in to see this image.] [You must be registered and logged in to see this image.] [You must be registered and logged in to see this image.]

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Re: Whats your Risk percentage per trade?

Post by aam on Tue 25 Oct 2011, 03:17

phoenix wrote:
AbuAnakMajid81 wrote:if really care about risk no play forex lor, forex 10 gamble 9.9 kalah one, mean nobody win unless you buy & hold, which mean at least got >10million $$ baru got little chance or else = donation to the rich onli lei

wah reall tht hard wor [You must be registered and logged in to see this image.] [You must be registered and logged in to see this image.] [You must be registered and logged in to see this image.]
my little opinion loh, maybe forex mentor can share top secret trick that make it so easy later Think Smiley

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Re: Whats your Risk percentage per trade?

Post by Cals on Tue 25 Oct 2011, 03:23

u need to scalp like how you do in klci to increase yr trading acc. Handshake

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Re: Whats your Risk percentage per trade?

Post by aam on Tue 25 Oct 2011, 03:24

to win you need to fight with these giant Phew veri easy nia lah Laugh
[img][You must be registered and logged in to see this image.][/img]

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Re: Whats your Risk percentage per trade?

Post by aam on Tue 25 Oct 2011, 03:26

Cals wrote:u need to scalp like how you do in klci to increase yr trading acc. Handshake
Cals tai kor can give some manual and guide? sharing is caring bah Kiss Hi
btw what is scalping?

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Re: Whats your Risk percentage per trade?

Post by Cals on Tue 25 Oct 2011, 03:30

can Innocent

scalping is what you guys do everyday like go in out , 100% cash end of day

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Re: Whats your Risk percentage per trade?

Post by aam on Tue 25 Oct 2011, 03:33

Cals wrote:can Innocent

scalping is what you guys do everyday like go in out , 100% cash end of day
ceh simple word say trading mar cukup lor, why use high-tech word scalping? dont tell me you door door salesman oso Laugh Giggle Handshake

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Re: Whats your Risk percentage per trade?

Post by phoenix777 on Tue 25 Oct 2011, 03:42

Cals wrote:can [You must be registered and logged in to see this image.]

scalping is what you guys do everyday like go in out , 100% cash end of day

scalp is earn sikit lor.....got profit lock in lor.....got lost lock in too....

bt forex market dont stop rite 24 hours moving....

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Re: Whats your Risk percentage per trade?

Post by Cals on Tue 25 Oct 2011, 04:13

opens monday myr 5am closes sat 4am :D

try babypips.com for starter education Handshake

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Re: Whats your Risk percentage per trade?

Post by aam on Tue 25 Oct 2011, 04:58

Cals wrote:opens monday myr 5am closes sat 4am :D

try babypips.com for starter education Handshake
forex can onli do at these website one? got local broker house do forex? these website seem fragile no secure lei (i just want to know onli i no play forex Laugh )

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Re: Whats your Risk percentage per trade?

Post by Cals on Tue 25 Oct 2011, 05:01

its not legal in malaysia to have a fx company here without license, though BNM is thinking about opening this up

they are many brokers out there, try their demo until you profitable or confident. this one long long journey lol

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Re: Whats your Risk percentage per trade?

Post by aam on Tue 25 Oct 2011, 05:21

Cals, since Jepang say want to interven Yen rise, so what effect cheap yen will have to our stock market?
got answer got one rep Laugh

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Re: Whats your Risk percentage per trade?

Post by Cals on Tue 25 Oct 2011, 05:27

cheaper imports and goods from jp, raises our import deficit Smiley

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