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Opportunity to use big lot size make taders to conduct aggressive trading. Use maximum lot without considering capital capacity. If traders trade with high capital, doesn’t create a problem if they are use big lot size in trading. However, if traders use small capital only, doesn’t wise approach if they are choose to use big lot size in trading.
That is right, risk management is important not only for our capital but also our own mental to face the harsh forex market. With a better management traders tend to get bigger profit or if not, lesser loss.Since the risk is very high, traders will suffering margin call easily when they are trade without proper risk management plan. Traders can get profit all the time though use the best strategy, if traders doesn’t manage capital properly or have no proper risk management plan, they’ll losing high once they are make wrong trading decision.
Risk is risk dude, you know something like when you lose your money and you feel bad for it, that is risk. Loss = Risk and you must trying to manage it because forex is unpredictable business you may win and loss in few minutes or vice versa. The most simple example is Planning of how much you can loss for today depend on situation.What kind of risk you are taking about?
Because they all don't realize how important about this risk management, only few apply it because it sounded so hard but in factual that is all is easier than what it seems. Afterall, having risk management could reduce your effect of losing money.I think nowasays traders talk a lot about risk management but only a small percentage really applies it.
And worse many don't even know what is risk management in forex trading is. They simply will say that risk management is managing risk. But ask them in details what is the scope and limitations of risk management and they can't answer you. So how can they implement if they don't know what is risk management to start with.I think nowasays traders talk a lot about risk management but only a small percentage really applies it.