Risk in Trading

[FXO_trader]

Absolutely, risk management is paramount in trading. Before entering a trade, I always define my reasons for entering, set clear profit targets, and determine my stop-loss levels to limit potential losses. This approach helps me maintain discipline and protect my profits while navigating the uncertainties of the market.

I didn’t understand this before. Traders I know said that stop loss is bad for a deposit, but practice helped me understand that trading Forex without limiting losses is impossible. You can lose deposits one by one.

 

[Antho]

According to me, manage risk in Forex trading by using stop-loss orders, setting a maximum risk per trade (e.g., 1-2% of your capital)

Totally agree. Using stop-loss orders is crucial in managing risk in forex trading.

 

[Antho]

I didn’t understand this before. Traders I know said that stop loss is bad for a deposit, but practice helped me understand that trading Forex without limiting losses is impossible. You can lose deposits one by one.

Exactly! Trading without stop-loss orders can lead to significant losses.

 

[FXO_trader]

Exactly! Trading without stop-loss orders can lead to significant losses.

Moreover, you can lose your entire deposit. You are waiting for the price to reverse, but the forecast was initially wrong and you are waiting in vain. It is better to take a loss and try to make the right decision about a new entry according to your trading strategy.