The Importance of Limiting Risk

Good morning Trader's friends, how are you today? Are there still people who are troubled because there is a position hanging because of a trapped minus?



I want to invite friends to ponder for a moment about the importance of limiting risk. Try friends, think about how many times we MC and what causes us MC. Most of the causes are that the arena is over lot and does not limit the risk of entry. I want to tell you a little about my experience at the beginning of trading. In the beginning when I started trading with quite a lot of funds, in my opinion, around 30 million, when I entered the market I never used SL because I traded with scalping, like a newbie in general, I applied the original technique of close blue, this technique does seem cool because I can collect profits quickly, but the problem is when my position is wrong I tend to leave it so it makes my margin drained and ends with the MC. Another problem that I face when not using SL is that I often come out of my trading plan, for example, my plan will come out if I have ploating minus 50 pips, but what happens is that when I have minus 50 pips I tend to be unwilling and feel heavy to make a cut loss, as a result I actually added the position again in the hope that the price will return, but what happened was the price continued until finally my MC account returned .. This happened repeatedly, if I had my total loss in forex maybe more than 100 million. But since I limited the risks and discipline to the SL, thanks to God, I have never felt the name MC.



I am reminded of a story, where there is a hunter who wants to catch a greedy monkey, the way the hunter catches the monkey is to punch a coconut shell the size of a palm, then the hunter puts food in the coconut shell. In the end the monkey put his hand into the coconut shell and grasped the food tightly and he did not want to let go of the food because of its greedy nature, consequently his hand could not come out and the hunter easily caught it.



Now the lesson that we can draw from the story is that we don't become the monkey, which is only because of food he is willing to risk his life. If only the monkey would let go of the food contained in the coconut shell, of course he would be easy to escape. Likewise, we are trading if there is a Ploating minus that we face outside of our trading plan, we should not hesitate to cut losses so that our account can be saved. Maintaining prolonged ploating minus is the same as maintaining cancer disease which if not immediately removed it will spread to other bodies causing death.

In general what happens is like that, traders often do not use stop losses, and when experiencing floating minus can hold it for days or even weeks, and when floating profit in a few pips just hurry to close the transaction. So what happens, the trading is even inefficient. therefore it is very important for traders to limit the risk of losses that they will face. Because we will never be with what happens in the future market movements.

Yes, true ploating loss that hangs for days makes us anxious and tends to be frustrated. Uncomfortable to eat and not sleep well. That is why I always recommend using stop loss every time Entry

That's right bro, by holding floating minus too long it will also have an effect on the psychology of the trader, especially if the minus gets bigger and doesn't clear the transaction. Therefore traders must be able to use risk management with more discipline that is using the stop loss in every transaction.

Then what about you? Have you been trading using stop loss so far? because so far many have said that they will use stop loss to maintain risk, but in reality they are trading with martingle and using large lots.

Now, I try learn to be able always be disciplined in using stop loss in each of my trading activities. Although sometimes I also use hedging instead of stop loss, the most important thing is to limit the risk of loss. In the past, I really liked martingale, but because I had experienced a margin call because of the martingale, then I was more comfortable using stoploss until now.

Good morning Trader's friends, how are you today? Are there still people who are troubled because there is a position hanging because of a trapped minus?



I want to invite friends to ponder for a moment about the importance of limiting risk. Try friends, think about how many times we MC and what causes us MC. Most of the causes are that the arena is over lot and does not limit the risk of entry. I want to tell you a little about my experience at the beginning of trading. In the beginning when I started trading with quite a lot of funds, in my opinion, around 30 million, when I entered the market I never used SL because I traded with scalping, like a newbie in general, I applied the original technique of close blue, this technique does seem cool because I can collect profits quickly, but the problem is when my position is wrong I tend to leave it so it makes my margin drained and ends with the MC. Another problem that I face when not using SL is that I often come out of my trading plan, for example, my plan will come out if I have ploating minus 50 pips, but what happens is that when I have minus 50 pips I tend to be unwilling and feel heavy to make a cut loss, as a result I actually added the position again in the hope that the price will return, but what happened was the price continued until finally my MC account returned .. This happened repeatedly, if I had my total loss in forex maybe more than 100 million. But since I limited the risks and discipline to the SL, thanks to God, I have never felt the name MC.



I am reminded of a story, where there is a hunter who wants to catch a greedy monkey, the way the hunter catches the monkey is to punch a coconut shell the size of a palm, then the hunter puts food in the coconut shell. In the end the monkey put his hand into the coconut shell and grasped the food tightly and he did not want to let go of the food because of its greedy nature, consequently his hand could not come out and the hunter easily caught it.



Now the lesson that we can draw from the story is that we don't become the monkey, which is only because of food he is willing to risk his life. If only the monkey would let go of the food contained in the coconut shell, of course he would be easy to escape. Likewise, we are trading if there is a Ploating minus that we face outside of our trading plan, we should not hesitate to cut losses so that our account can be saved. Maintaining prolonged ploating minus is the same as maintaining cancer disease which if not immediately removed it will spread to other bodies causing death.

thanks for the story, but can you tell us how you discipline, and limiting risk?, because i really want to know how you do it

Good evening brother, reading from what you share is very good, sharing previous bitter experiences when you jumped into the world of trading, and I think that until now there are still MCs or margin calls, all those who have problems are psychology, and don't manage management well, Regardless of the capital deposited if we are not aware of the importance of good management, we will not achieve success in trading, logically by depositing large amounts of funds, it is certainly easy to manage management with a low risk entry, thank you.

yes bro I really agree with your opinion about this trading. indeed most newbie traders don't care about risk but are more focused on profit ambitions

agree with you if we dont put stop loss in trading forex we going be a crazy man if we lost all of our capital

wow ... have you ever experienced that? Lost all your money in one deposit? I was saddened by that. I've also experienced it. which is why I always calculate the risk before entering the market.

As hard as it takes it takes about one year to be able to master trading psychology. Most beginners have more problems with discipline, they want too much profit in a short time

yes, it is quite difficult, bro, if we are forced to be able to be proficient in trading in a short time, usually within a year beginner traders only recognize the indicator as a reference for entry, not in the direction of psychology.

I think there's no such thing as a difficult one if we want to practice. All depends on habits, if we are accustomed to discipline in forex trading, of course, later it will become habit and we will easily go through it. I have also been in that phase.

cool, bro ... it's true that if we always practice consistently, we will still get results in accordance with our training capacity, but it takes extra time and patience.