Different trading and risk management strategies will lead to different outcomes

Not all Forex traders are the same; everyone’s performance is unique. The way that your methods can become more profitable is by understanding and respecting the best risk management strategies for trading. You should primarily focus on managing your trades in a way that minimizes losses and increases profitable trading outcomes.

Be flexible with your long-term trading risk management

You will experience many different challenges when managing your trades. While flexibility is essential, this does not mean you should completely change all of your strategies when faced with a new challenge. You should be adaptive and build upon what works for you. At the beginning, it may appear as if many strategies are not working at all. However, if you persist, you are bound to have a breakthrough and find a system that works for you when managing trades with minimal trading risk management.

Trade risk management with minimal risk

Your primary goal while managing your trading should be to minimize risk. Protect your trading capital while you allow for growth and maintain a healthy risk-reward ratio. There are many Forex trading strategies you can employ to build efficient risk management that will help you to achieve your long-term goals.

Essentially, these approaches will assist in reducing overall exposure to risk and minimise the likelihood of substantial losses as an outcome. Start by risking 1% over the next 4 weeks while implementing effective risk management strategies in your training and analyse the results of your performance.

When to close profits and losses

The simple answer to closing positions is, ultimately, when your bias changes. In most cases, you want to leave your trades to run, but there will be times when it is best to close out trades early, both when they are making profits and losses. You need to read and focus on the daily candlesticks to identify shifts, and then capitalise where you can. You must follow your risk management rules strictly in order to maximize profits.

Managing stop loss orders

Stop losses are not a trendy subject, but using them to restrain your trading like a seatbelt will only help you in the long run and promote optimal trading risk management. Knowing exactly where to set your stop loss initially can be tricky, but the level depends on your style and the situation. By utilising this tool, you can eliminate your losing trades as soon as possible and cut losses at the right time.

Usually, 15 to 20 pips above or below the prior high/low on the respected timeframe is sufficient long-term. Once your stop loss has been set, you should only adjust it to either break even or to profit. Never extend the amount of risk on one trade; always be firm with your stop losses. This strategy can be the key to optimal trading risk management.

Trading risk management overview

Overall, trading risk management is simple: you must earn the right to trade bigger. Managing the building blocks of your basic trading habits will allow you to grow capital in a way that will enable you to trade bigger down the road.

Be patient and enjoy the long road ahead without fear of loss. Stop losses can either aid in your profitability or capture profits. Using them will not guarantee success in trading, but without them, a trading career will be short-lived.


All our funded accounts come with a fixed equity stop out level. Once the account equity level gets below this fixed stop out bar, we will close all running trades and disable trading and access. The stop out level is a fixed value for each funding level, this means that any profit which has been made by the trader increases the loss allowance.

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