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Risk Management

Quoting MLeslie
biggest myth in trading is that all you need is more than 50% probability. You need 90% if you want a career at this. And you should have 90% probability of Break Even, Full Target, and 97% probability of NOT losing your full risk. Problem is people dont know WHERE there targets are or how to control risk in the trade.

Do you think you will get near 90% with one percent risk? Not gonna happen unless you are a god scalper with perfect entries..And if you are that one percent risk is not on your mind..The truth is many trades one takes need to be massaged into winners or small losers...Building up positions is preferable assuming that you know how to manage them
Quoting The Fool
{quote} Well that could be true in a bull market, no doubt. If all you did in US equities for the last 8 yrs or so was btfd on every X ,% dip, you'd be in tall cotton.
I've been thinking that being just a seller or just a buyer would be most beneficial trading forex mainly because of correlation. Specifically, inverse correlation. Once on pair has made it's move down and bottoms out, it means another pair is making it's high and getting ready to fall. Take money out of one instrument and move it to the next.
Quoting themanderson
{quote} I've been thinking that being just a seller or just a buyer would be most beneficial trading forex mainly because of correlation. Specifically, inverse correlation. Once on pair has made it's move down and bottoms out, it means another pair is making it's high and getting ready to fall. Take money out of one instrument and move it to the next.
Then how will you determine the extreme bottom line? By the way, initially I tried for correlation system, but I found nothing especial.
Quoting MariaEduard
{quote} Then how will you determine the extreme bottom line? By the way, initially I tried for correlation system, but I found nothing especial.
I guess I don't understand what you mean by the extreme bottom line. If you mean where I should take my profits, it would be the next level on the weekly or daily time frame.

My use for inverse correlation is so that I can sell only. This cuts my risk in half by avoiding buy orders and possibly getting stopped out.

This gives me plenty of opportunities since when one pair is moving up, the other has a high probability of moving down.
Quoting themanderson
{quote} I guess I don't understand what you mean by the extreme bottom line. If you mean where I should take my profits, it would be the next level on the weekly or daily time frame. My use for inverse correlation is so that I can sell only. This cuts my risk in half by avoiding buy orders and possibly getting stopped out. This gives me plenty of opportunities since when one pair is moving up, the other has a high probability of moving down.
Thank you very much for your words. By the way, in my trading I mainly follow the D1, a awesome time frame.
  • Post #66
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  • Last Post: Jun 14, 2018 1:28am Jun 14, 2018 1:28am
Without proper risk management this trading journey can be extremely difficult for any foreign currency trader. Various risk management modules are being used by the currency exchange traders to hedge their wealth position against the riskiness of the market. Sometimes, I use hedging when I really feel that market is extremely volatile yet I have to continue my trading. And in many instances, I use various pending orders like stop loss, trail stop or take profit to minimize the risks lower as possible.
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