what is your risk management strategy for forex?

[moyobo]

How do you manage risk in forex curious to know if you've find something that works for you and would like to share

 

[paparaxee]

1. Setting stop-loss orders: A stop-loss order is an order placed with a broker to automatically close a trade when the market moves against the trader by a certain amount. This helps to limit potential losses and protect the trader's account.
2. Using a suitable leverage level: Leverage allows traders to control large positions with a relatively small amount of capital. However, high leverage can also increase risk, so it's important to use a leverage level that is appropriate for the trader's risk tolerance.
3. Diversifying the portfolio: Diversifying the portfolio by trading multiple currency pairs can help to spread risk across different markets.
4. Risk-reward ratio: By always keeping a good risk-reward ratio, traders ensure that their potential profits are always higher than their potential losses.
5. Position sizing: Traders should only risk a small percentage of their account balance on each trade, and adjust the position size accordingly.
6. Keeping emotions in check: Traders should avoid letting emotions like greed or fear influence their trading decisions.

It's important to note that no strategy can guarantee profit in the forex market, as the market is highly volatile and subject to a variety of factors.

 

[Daantje Pieters]

Risk management policy should be followed from the root of trading. Forex goes through different situations owing to economic instability.