The meaning of risk. What does risk mean to you?

[Bree98]

To date, using a new trading strategy or condition for live trading feels risky to me unless I back-test them on my demo account. Also, trading without using a stop-loss seems to be too risky for me. I would never take that risk.

That's a good take that you practice on a demo account first, what else do you do to manage the risks?

 

[noframe]

Risk comes with opportunity as well if proper risk management strategies are applied.

 

[fredfrazier]

@pipbeeppip Backtesting a trading plan before trying it on live is the best way of reducing risk. It would also be a good idea to calculate the risk that is involved in the trade.

 

[deaddog]

It would also be a good idea to calculate the risk that is involved in the trade.

How do you do that?

 

[Tritical]

In any financial market, there is risk. There is no guarantee whether the outcome will be a positive one. So risk is basically the money which you can afford to lose.

 

[Bailiwick]

Risk for me is a probability of losing a part or all of my initial deposit in a trade.
Having a risk management strategy in place is my first priority whenever I enter a trade because I believe that the key to consistent success as a trader is to keep your losses smaller than your profits. It’s imperative for every trader to build a trading plan and specify risk-to reward ratio, leverage, decide stop limits and take profits and follow it strictly without any deviation.

 

[ActiveLead]

Risk for me is a probability of losing a part or all of my initial deposit in a trade.
Having a risk management strategy in place is my first priority whenever I enter a trade because I believe that the key to consistent success as a trader is to keep your losses smaller than your profits. It’s imperative for every trader to build a trading plan and specify risk-to reward ratio, leverage, decide stop limits and take profits and follow it strictly without any deviation.

What strategies do you follow mate?

 

[Normalcy]

Risk is how much percentage of money you can afford to lose. Forex is a speculative market, and there is no guarantee whether you will win or lose. As a trader, you need to be very careful with money and trade with calculated risks.

Understanding risk associated with trading is important. But it is also important that you take steps to control it. For instance, every trader should use stop loss and take profit order to minimise risks.

 

[Lappaceous]

Risk is that percentage of money which you can potentially lose in hope of getting returns. Forex is a high-risk and high-reward market. You have to take risks if you want to make money. However, the risk should be calculated.
You should also take the right steps to minimise risks because forex can be highly volatile..

 

[Feculent]

Risk is the potential that your chosen investment may fail to deliver your anticipated outcome. One should not risk more than 2% of the total account value and should use a strong risk management strategy to avoid unnecessary loss.