Reducing risk or Risk management in Forex.

Quite a few articles have been written about risk control in Forex, but still this topic does not cease to be less relevant; in the process of work, new solutions appear that can be applied to reduce losses.

Using the right approach to trading, you can practically eliminate the risk of losing your deposit, which is the main danger of Forex trading for a novice trader.

Risk management in Forex includes the following activities and approaches.

• Control over volumes - the volume of the opened transaction must correspond to the planned time of its maintenance and market volatility .

For example, if you plan that the transaction will exist for only a couple of minutes ( scalping ), you can take a risk and use a leverage of 1:100, 1:200, if several hours - 1:50, days 1:10.

At the same time, you should not deviate from the planned plan; the longer you hold a risky position, the higher the risk of losses.

• Risky moments - during price surges it is better to refrain from opening transactions; these moments can be determined on M1 by the presence of long candles.

That is, the price covered the maximum distance per minute, which indicates its high speed. The rule also applies to the release of significant news; trading at this time is just as risky. You can determine this time using the economic calendar .

• Stops should always be present - even with short-term trading, it is advisable to always set a stop loss; a five-digit quote allows you to place this order as close as possible to the price.

And when opening long-term and medium-term positions, there can be no talk of working without stop losses. • Refusal of advisors - most of them have a high risk and, despite the assurances of the developers, sooner or later lose the deposit.

If you are already using a robot for automatic trading, take the trouble to regularly withdraw profits and monitor its operation. • Unused funds - do not store excess money in the same account as the deposit for trading; the trader’s account should contain only the amount necessary to support the transaction, and it is better to transfer the rest of the money to another account or keep it in the trader’s office.

Such a simple move will prevent you from losing everything if unforeseen circumstances arise. You should not think that all risk management in Forex comes down to setting stop losses and trailing stops ; sometimes even these orders do not help, so it is advisable to use the above measures in trading.