Risk management plays a big role

[lol22]

Risk management is important.you have to risk what you can afford to loose and how big is your account

 

[pippin]

Risk management is important.you have to risk what you can afford to loose and how big is your account

Yeah we should set relative targets rather than absolute. For example 1% from equity (profit target or SL) is better than 10$, because as your equity floats absolute targets will increase or decrease risk, while you don't care about fluctuating risk when you use relative targets. It is very convenient and efficient.

 

[Vali]

Yeah we should set relative targets rather than absolute.

 

[sahara]

Risk management in forex involves implementing strategies to protect your capital and minimize potential losses. It includes setting appropriate stop-loss orders, managing position sizes, diversifying trades, and using risk-reward ratios. The goal is to preserve capital and maintain a long-term perspective.

 

[kingtrials]

I prefer to use break-even after a certain amount of pips / trailing as the amount of times price has reversed and you lose a profitable trader, you need to bank profits.

 

[pippin]

I prefer to use break-even after a certain amount of pips / trailing as the amount of times price has reversed and you lose a profitable trader, you need to bank profits.

Trailing stops are great thing however not every trade goes in profit far enough where you can set trailing stop at breakeven and enjoy the safe trade. The share of such perfect trades from my experience is 20-25% only from all winning trades.

 

[sharp1278]

Agree，we can live longer in the market with a feasible risk management