- Post 5,186
- Cleanup
- Quote
- Jan 6, 2019 9:10am
- https://cdn-assets.faireconomy.media...ar392875_1.gif BenjaminIs
- | Commercial Member | Joined Dec 2014 | 4,460 Posts | Online Now
Quoting otnishan
hi benj, would you share about your "risk management"? here that i understand is only TRADE MANAGEMENT and MONEY MANAGEMENT,maybe you would add about 'RISK MANAGEMENT. money management, that i read on forum is about "position sizing". trade management,is about sl/tp/exit ( risk reward ratio ) if i dont make a mistake,would clarify on this and explain about your risk management/trade management/money management. thanks
So we start off with a Forex trading account of $50,000 US dollars.
Rule (1) We NEVER trade more than 20% of the funds in the account so that means not more than $10,000 US dollars used of the $50,000 US dollars. That eliminates Margin Calls.
The reason that most retail Forex traders MUST lose their funds is that they trade with too little trading funds. I have traded with $5000 US dollars and $25,000 US dollars and $50,000 US dollars. My largest account was $100,000 US dollars. These are all Real Funds accounts.
Rule (2) Each trade plan that I trade is put in place for a period of 90 days. As an example at the moment my First trade plan is to short US 30 (Dow 30)
I scale in my shorts first by putting on a position of Short 50 units of US 30 and if there is a draw down of $500.00 US dollars then I put on a second Position of Short 100 units of US 30. The third position IF put on again is put on depending what is happening in the markets concerning US 30 (Dow 30)
The maximum LOSS for each Trade Plan is 5% of the trading capital or $2500 US dollars of the $50,000 US dollars being traded.
i can give more details however please read what I have posted and post any questions that you have.
Benjaminis
BWM