Friday, November 25, 2016

Risk control

Risk control (risk management forex).

One of the most important components of forex trading is risk management, and the novice trader, sometimes can not even imagine how important this issue is and how it affects the overall financial result of trade.

Risk Management in Forex involves the use of a set of measures designed to reduce financial losses from the influence of both external and internal factors.



Before you create your should understand management system, what are the risks in forex.

Risk control when trading on the stock exchange may be associated with both not predict changes in exchange rates, and from a purely technical reasons. But the result is at its origin is usually the same - in a loss.
Reduction of technical risks.

This category include all the troubles that arise as a result of failure of commercial equipment, and their not so little:

Interruption of the connection - usually this trouble happens at the crucial moment, so before you start trading think about what you will do if lost communication with the broker. The easiest option is to use a backup terminal on your mobile phone. How to use this option you can read in the article "Mobile Trading Forex."

Hang or hardware failure - you have a broken computer or floating terminal, and the deal remains closed. can be used, if desired, the same recommendation as in the previous case, but you can just phone the broker and manage the trade with a telephone password.

Violations by the broker - this recommendation applies to those who traffic in large amounts, otherwise the time spent on the search for the truth, will cost more than the money returned. For additional safety net, you can create a screenshot after the opening of each transaction, it will serve as an additional argument in the contentious proceedings.
The fight against currency risks.

Fully trade without losses on the stock exchange is simply not possible, but you can try to reduce them to a minimum.

Setting stop-loss - the most simple and yet effective way to reduce losses due to changes in the course. The main benefit from this order immediately when you open the new order. How to set a stop-loss and to determine its size, is described on the link correctly.

Using a minimum of leverage - the less leverage you use for your forex trading, the greater the chance not only to retain the deposit, but also profit.
Conduct a simple experiment, this reduce their leverage, or simply the volume of transactions 10 times, and so traded during the week. And then compare the Profit factor before and after, and you will be pleasantly surprised.

Trade with the trend - a capital axiom, which is required to follow always, since that would trade on the correction required a lot of experience and endurance. So what for once again to expose their money to risk.

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