If you want to hold trading positions for a very long time, then you need to understand two things:
1. Risk management
2. Level close position.
If you have a forex trading account with $ 1000 or $ 1,000,000, the second of the above must be known before the trade is done.
Why do these two things important?
I will try to describe some of my mistakes when starting forex trading. Perhaps after reading this, you will understand how important because if you've logged into this situation, this experience will be important or if not, you will soon experience it.
When I begin a transaction and to learn, there are times when I am so convinced that trade will be profitable because of high confidence will obscure the meaning of risk in forex trading.
Now, with no loss of power moment will continue to increase beyond the level of comfort and akhirny amembuat great loss! Stop loss is hit with heavy losses.
Now I am struggling to re-create a forex trading account having just suffered a major loss.
How much risk per trade?
First decide how much you feel comfortable to take the risk of losses on every trade you make. You need to specify how many% (percentage) risk per trade.
Let's make some calculations, if you have a risk of just 2% of your account on each trade, then any 50 consecutive defeats transaction will remove the funds in the trading account $ 10,000.
If you have a risk of 5%, then the funds in your trading account will be depleted with 20 defeats in a row. If the risk of 10% on each trade each then you only need 10 times in a row suffered trading losses.
"Can you see a pattern here? the more you have a high risk on each per trade ".
If you have funds in your account $ 5,000 then to risk 2% per trade, this equates to risk $ 100 per trade. At the risk of 5%, you are risking $ 250 per trade.
With a 10% risk, the risk per trade is $ 500.
Personally I trade with risks from anywhere between 1% to 5%. With meresikosikan 5% per transaction for me it was a suicide.
Remember, the more you risk, the more quickly your forex trading account funds will be lost.
Here's what I did:
1. I have a daily trading risks between 1% and 5%.
2. If I lose 5% on the day, then I will stop trading.
3. When I trade on tomorrow, I will be dealing with the risk of trading 1% or 2% every day.
4. I will trade with a small risk to get back the original account.
Why 2% for risk management? I have bought and read and books on risk management to trade forex and a lot of these books say that we have to risk 2% per trade.
Strategies close position
Before you open a position, you should have a plan on how to close the position.
You will close the position when:
Stop loss of contact
The advantage for the target take profit hit
Trailing stop loss of contact
Close the position when the loss is too many.
Close look at an entry position when the trading signals as opposed to the open position.
Some traders have ata system ustrategi close position
So it is important for us to know two things above so we can use on a daily forex transactions.
1. Risk management
2. Level close position.
If you have a forex trading account with $ 1000 or $ 1,000,000, the second of the above must be known before the trade is done.
Why do these two things important?
I will try to describe some of my mistakes when starting forex trading. Perhaps after reading this, you will understand how important because if you've logged into this situation, this experience will be important or if not, you will soon experience it.
When I begin a transaction and to learn, there are times when I am so convinced that trade will be profitable because of high confidence will obscure the meaning of risk in forex trading.
Now, with no loss of power moment will continue to increase beyond the level of comfort and akhirny amembuat great loss! Stop loss is hit with heavy losses.
Now I am struggling to re-create a forex trading account having just suffered a major loss.
How much risk per trade?
First decide how much you feel comfortable to take the risk of losses on every trade you make. You need to specify how many% (percentage) risk per trade.
Let's make some calculations, if you have a risk of just 2% of your account on each trade, then any 50 consecutive defeats transaction will remove the funds in the trading account $ 10,000.
If you have a risk of 5%, then the funds in your trading account will be depleted with 20 defeats in a row. If the risk of 10% on each trade each then you only need 10 times in a row suffered trading losses.
"Can you see a pattern here? the more you have a high risk on each per trade ".
If you have funds in your account $ 5,000 then to risk 2% per trade, this equates to risk $ 100 per trade. At the risk of 5%, you are risking $ 250 per trade.
With a 10% risk, the risk per trade is $ 500.
Personally I trade with risks from anywhere between 1% to 5%. With meresikosikan 5% per transaction for me it was a suicide.
Remember, the more you risk, the more quickly your forex trading account funds will be lost.
Here's what I did:
1. I have a daily trading risks between 1% and 5%.
2. If I lose 5% on the day, then I will stop trading.
3. When I trade on tomorrow, I will be dealing with the risk of trading 1% or 2% every day.
4. I will trade with a small risk to get back the original account.
Why 2% for risk management? I have bought and read and books on risk management to trade forex and a lot of these books say that we have to risk 2% per trade.
Strategies close position
Before you open a position, you should have a plan on how to close the position.
You will close the position when:
Stop loss of contact
The advantage for the target take profit hit
Trailing stop loss of contact
Close the position when the loss is too many.
Close look at an entry position when the trading signals as opposed to the open position.
Some traders have ata system ustrategi close position
So it is important for us to know two things above so we can use on a daily forex transactions.
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