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Additional Username
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Joined Jan 2020
|265 Posts
The first thing you need to look at is the market context. 4 types of context such as volatile / non volatile / impulsive / and corrective. Trading is done by combining support and resistance levels with these 4 things but the amount of loss will be reduced a lot.
If you have a system which is making 5% monthly with a maximum drawdown of 15%, you could multiply your trading size by 3 or 4 and you will obtain 3x5% or 4x5% monthly with a maximum drawdown of 45%-60% => THIS is very high risk.
The first thing you need to look at is the market context. 4 types of context such as volatile / non volatile / impulsive / and corrective. Trading is done by combining support and resistance levels with these 4 things but the amount of loss will be reduced a lot.
Ignored
True. Also, learn to accept the losses and when to enter and exit from market.
If you do not follow the money management, then in each case there is a risk. So first you have to do money management and risk maintenance.
Ignored
Yes money management is very very important. Trading is very risky business. That's why we need to manage risk by following different measures. But unfortunately most traders do not follow rules.
{quote} Yes money management is very very important. Trading is very risky business. That's why we need to manage risk by following different measures. But unfortunately most traders do not follow rules.
Ignored
Yes I agree with you. Most newbie traders do not follow risk management rules. They live in a false world that no matter what they can make money by taking high risk. Some random profitable trades make their perception strong.
A lot of companies deliberately create that illusion for newbie traders, unfortunately.
Ignored
I concur, Lawson. My experiences with qualified licensed broker and non-licensed brokers tells me one thing, which is the newbie traders has lack of resources to confirm the "quality" of brokers. They give out the rosy illusions pretty much all the time and get newbie traders to trade and to lose.
{quote} Scam brokers often offer rubbish offer or steal from traders' money to satisfy their need.
Ignored
That's right and such things have become too common nowadays. One should be quite careful while dealing with any new broker, whether it is trustworthy or not.
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Additional Username
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Joined Apr 2018
|323 Posts
risk is everywhere , there is no way to avoid , but in spite of having much risk you can bring good amount of profit from this trading place if you can make sure best risk and money management.
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Additional Username
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Joined Jul 2020
|131 Posts
Of course we can manage the risk but it does not alter the fact, that we will still have losses or mistakes in trading. And we should accept it. While, there are many things to have consider to have minimize our losses and to prevent huge losses or we lose our trading account. And it should be with the risk management.
