Risk management

[OscarR]

What's your risk management strategy for getting payouts during the 'funded' phase?

 

[Ethan.ishere]

The only thing I consider aside from all the obvious, is always keeping a realistic risk-per-trade ratio.

 

[OscarR]

Do you also use specific stop-loss and take-profit strategies to manage your trades, or do you adjust them based on market conditions?

 

[MycoCash-5678]

Do you also use specific stop-loss and take-profit strategies to manage your trades, or do you adjust them based on market conditions?

My Stop-loss depends on my trading capital at all times even as it grows and my take profit is always at least x3 of my stop-loss. I only adjust my stop-loss to break even but if other way, my stop-loss remains intact.

 

[Ethan.ishere]

Do you also use specific stop-loss and take-profit strategies to manage your trades, or do you adjust them based on market conditions?

I apply them based on the strategy, the pattern, and potential that I can see in a trend, it is not a stable process for me.

 

[LJ_Kon]

I apply them based on the strategy, the pattern, and potential that I can see in a trend, it is not a stable process for me.

it's a good approach as it adapts to market changes

 

[OscarR]

My Stop-loss depends on my trading capital at all times even as it grows and my take profit is always at least x3 of my stop-loss. I only adjust my stop-loss to break even but if other way, my stop-loss remains intact.

Yeeha I understand what you said.
that is what trade coaches say all the time to set you TP 3x times bigger.

 

[OscarR]

I apply them based on the strategy, the pattern, and potential that I can see in a trend, it is not a stable process for me.

That's really wise.
thank you for sharing g your ideas here.

 

[Ethan.ishere]

it's a good approach as it adapts to market changes

Exactly, a dynamic approach is much more preferred.

 

[LJ_Kon]

Exactly, a dynamic approach is much more preferred.

Yep

 

[stepphiesecret]

My Stop-loss depends on my trading capital at all times even as it grows and my take profit is always at least x3 of my stop-loss. I only adjust my stop-loss to break even but if other way, my stop-loss remains intact.

Great strategy! Keeping your stop-loss tied to your trading capital and aiming for a take profit that's at least 3x your stop-loss is solid. Adjusting stop-loss to break even is smart too. Stick to it and good luck!

 

[LJ_Kon]

Some basics:

 

[LJ_Kon]

One of the best books I'd recommend for diving into Forex risk management is "Trading in the Zone" by Mark Douglas. What makes this book stand out is its focus on the psychological aspect of trading, which is crucial but often overlooked. Douglas discusses how traders' mindsets and attitudes significantly impact their trading decisions and results.

The book isn't just about Forex; it applies to various financial markets, but the principles of discipline, confidence, and risk management are universally applicable

 

[LJ_Kon]

The reason I really like this book and think you might too is its practical approach. It doesn't just throw technical strategies at you but gets to the core of trading psychology. This focus helps in managing the emotional ups and downs that come with trading, making it a great read not only for learning specific risk management strategies but also for understanding how to maintain your composure and decision-making quality under pressure. It feels like having a wise mentor guiding you through the mental maze of trading.