What types and methods of risk management you use? Any software? What risk limits do you set?
Let's share
Let's share
Before I started trading, a good friend of mine told me to at least record my trading history especially the ones that I have accumulated lost with. It helps knowing on which part I made a mistake either by overlooking the said item or being overconfident about my gut.
One risk management that I learned over the course of my experience is to aim for small trades with relatively small profit. Although the profit may be low compared to medium to big trades, I consider it 'safe' as I always have a safety margin of my resources whenever I trade.
Market is unpredictable and minimize risk is important to save our asset, other benefits is make us stay realistic and disciplines with psychology trading. We can't avoid risk and manage it use stop loss, money management and investment program really helpful. Some people never use risk management and fail and that is not good story, use it so you can share and get solutions to change your strategy.
The market may be unpredictable but there are tools that may support your forecast in the market. If the market is too risky, avoid going for big trades especially if you are uncomfortable with it. Also one thing to note, only trade the amount that you are willing to lose.