Risk management plan--how to calculate it??

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Risk management plan--how to calculate it??

Postby sohel » Tue Dec 20, 2011 3:37 am

Hi, I'm new here as well as in forex trading. I'm learning about forex trading for last 3-4 months and demo trading for last 1 month. Thanks to almighty that I've found this forum and the parent site. This is a very good site. Before finding this site, I was trading bogus.... whatever, now I'm going right into my question--

as I was following the strategies in the site one by one to find some strategies that may suit my mentality, my way of understanding and knowledge. One thing I've found using some strategies that after entry into a position with a money management policy.... that is stop loss at a target pip....price hits stop loss first before going along my predicted direction and ultimately reaches my profit target..... but as it hits the stop loss first..... I can't get the profit.... what may be the cause??? I'm not mentioning the strategies as it happens for more than one or two strategies..... so I guess, it may be a fault with me..... is it may be due to a delayed entry or tight stop loss?.....as everyone says that, one should put stop loss at such a point one can afford to lose per trade..... so if I want to loosen up my tight loss, I've to risk more or I've to invest more to avail such liberal stop loss??

I was trading with micro-lot.... one thing I want to clear.... about risk management plan..... the amount I should risk in a trade.... I should calculate it in relation to which one-- the amount in my equity or the amount I've used in the trade?? for example, $500 in account.... I'm using $50 in a trade with leverage 20:1.... with 1% risk.....so it's 1% of $500 or $50....

With thanks
Sohel
sohel
 
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Re: Risk management plan--how to calculate it??

Postby forex trader » Mon Feb 27, 2012 5:21 am

Thank you for your valuable experence ,it will become a great help to me .
What's more ,i'd like to share some advanced forex bolgs website
Code: Select all
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forex trader
 
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