Risk Management

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Risk Management

Post by Evgenia Gencheva on Wed Oct 05, 2016 12:05 am

Risk Management
Risk management is key to successful forex trading. Everyone should build individual skills to analyze market risks and finding solutions to reduce these risks.

Leverage effect
With high leverage you can earn more money but also lose more. For small accounts is not recommended to use high leverage. For example, this is an account with leverage 1:1000, managed by me with almost 100% profit in one month.



The high volatility and market gaps are risks that must be considered before opening position. The volume of orders must be consistent with the leverage and account capital.

How to limit the risk?
Lately most used method for limiting the risk is hedging, but you need good knowlege. Different capital amounts, allows the traders to trade in a different way.
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Evgenia Gencheva
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