![]() If you use only 2.5% risk, after a streak of 4 losing trades, you would still have more than 90% of your balance available. This is to prevent your account from blowing up in case of a streak of losing trades.įor example, if you risk 25% of your account with each trade, after a streak of 4 losing trades, you are left with almost nothing. One of the most popular rules of risk management is to invest in each trade only a small percentage of your entire account. So, if you are in a trade, and the price moves against it, there is a price where the trade will be closed and the loss will become realized.Īs a general rule, you should define the stop-loss before entering a trade. The stop-loss order is your last call to exit a trade and is part of almost every strategy and trade that you execute. ![]() Stop-loss is a price, or a distance from the open price, where you want to exit a trade. Using sound risk management can make a difference between blowing your account up or not.Īlso, risk management is often the most striking difference between a successful trader and an amateur. You will encounter consecutive streaks of losses. Risk management consists of a set of rules that can keep your account safe from unexpected events.ĭuring your trading activities you will encounter periods of drawdown. Whether you trade Forex, stocks, indices, commodities, or any other instruments, it is no secret that risk management is fundamental. The graphical interface is designed to be as simple as possible. This trading "plugin" allows you to perform operations that usually are not so quick and it is very simple to use.
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