Forex risk management is one of the most debated topics in trading. On one hand, traders want to reduce the size of their potential losses, but on the other hand, traders also want to benefit by getting the most potential profit out of each trade. And there’s a common belief that in order to gain the highest returns, you need to take greater risks.
The reason many traders lose money in Forex isn’t simply inexperience – it’s poor risk management. Due to its volatility, the Forex market is inherently risky. Risk management in Forex is, therefore, a non-negotiable success factor for both beginners and experienced traders alike.
This is where the question of proper risk management arises.‼️ Follow this risk management strategy
-$100-$200=0.01 lot size (Max 5 trades)
-$300-$400= 0.02 lot size (Max 5 trades)
-$500-$600= 0.03 lot size per trade (Max 5 trades)
-$1000=0.05 – 0.07 lot size per trade (Max 6 trades)
-$2000=0.10 lot size per trade (Max 7 trades)
-$3000=0.15 lot size per trade (Max 7 trades)
-$4000=0.20 lot size per trade (Max 7 trades)
-$5000=0.25 lot size per trade (Max 7 trades)
(SL size will be 40-70 pips so adjust your lot size accordingly)
-How to Trade with 3 TP?
-So if there are 3 TP
-To use a trailing stop, you go to a trade that is profiting by at least 10+ pips and move the SL to entry or 5pips in profit
-Your profit is then secured
-The best way to set trades with all 3 TPs
-You only have to open 1 position for each trade, the easiest method is to place TP3 and SL, once the trades start to go up, keep moving the SL to entry and then to profit.
-Another way to set trades with all 3 TPs
-When the trade reaches TP1, close half of it and wait for it to reach TP2, then close the half of the remaining trade and then let it goes to TP3, if it reaches it you made more profits or it will just reach entry and you won’t lose anything as you have moved the SL.
-How to Close Half and Move SL to Entry?
-Select your trade and press Close
-Reduce your Lot Size by half
-Press the Close button
-Select your trade and press Modify
-Change the SL to the point you entered the trade.
Trading is very risky, do not risk more than 1% of your account.