Learn to be a Profitable Trader! Master your Forex Risk Management

1
Forex Risk Management

• Learn to be a Profitable Trader!
• Master your Forex Risk Management

2
introduction

• Risk management is a very debated topic in forex
  trading. There are traders who adopt very
  different risk management methods to make the
  same amount of profits. There is no right way to
  do it, only a way that serves the individual
  trader best.

3
Forex Risk

• The forex market is one of the largest in the
  world, we need to ensure when investing in this
  market that risk is minimised. Transactions are
  happening every day, markets are moving every
  second. Losses can be incurred as a result of
  exchange rates fluctuating.

A Simple Mistake Many Traders Make When Trading
Forex

• The biggest thing to remember when investing
  money into the forex market is that you should
  never trade with money that you cant afford to
  lose.

4
Understanding Risk Management in Forex

• In order to improve your forex risk management,
  you should always have a tested trading plan
  which will be tested with realistic risk
  parameters. The time you spend creating a trading
  plan will not be wasted as this is your staple
  when it comes to trading. Without a direct plan,
  you will surely fail.
• Always ensure you are using stop losses, trading
  in forex without a stop loss will not end well.
  This is your safety net, ensure it stays in place
  on all your trades.

5
Risk Management in Day Trading or Scalping

• Leverage and margin are big factors in trading.
  Throughout the day your margin can increase
  dramatically. If you have too many trades on, you
  will suffer. To ensure this doesnt happen, make
  sure your position size for each trade is
  reasonable and low risk.

Conclusion

• From following the basic points above, you will
  have a good foundation of managing risk
  parameters in trading the forex market. Just
  remember larger losses will also make you fail,
  ensure you minimise losses as much as you can.

6
Thank You

• How to become a profitable Trader.By any chance,
  if you are a new trader and would like to learn
  how to trade, then sign up today to our 2-day
  free Foundation to Forex Trading.