User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday July 27, 2022 - 15:26:15 GMT -

Share This Story:
| | Email

Attention Traders: Why You Need Risk Management.

One of the goals of any retail trader should be to preserve capital so you can live to trade another day. In other words, most traders have limited capital allocated for trading and if you lose it, you are out of the game.

This sounds like common sense but it is a basic tenet of trading that is rarely followed. If you don’t believe me answer the following question:

Have you ever spent days or even weeks trading profitably, building some equity in your account, only to see your gains wiped out with one trade where you took an excessive risk or just lost discipline?

If I polled traders with this question most, if not all, would have answered in the affirmative.

But old dogs can learn new tricks…

I have always thought in terms of pips rather than percentages when I trade. There was no clear plan. I would put on a trade, add a stop based on x number of pips I was willing to lose, and then book a profit at my discretion.

This all changed when I created The Amazing Trader (AT). Stops were placed above/below an AT line and other AT lines were used to set a profit target.

However, there was no risk management strategy on my part. My focus was just on looking for profitable trades.

Then my whole approach to trading changed. It is hard to imagine after all these years of trading I could evolve but this is, in fact, what has happened. The Amazing Trader added a structure to my trading by adding a risk management tool with a strategy that took it to a new level.

Here is how it works:

Set a default risk/reward ratio in the template for each trade (e.g. 1.25:1)

Using the built-in risk management tool and employing an AT strategy:

1) Place a stop above/below an AT line

2) Enter a trade (buy or sell)

3) Program will so the rest: Determines trade size and take profit that maintains default risk/reward ratio


In other words, you never risk more than your preset percentage of capital on any trade. Using this approach with a 1:25:1 default risk/rewards, as long as your win/loss is 50/50 or better, you will be a profitable trader and build equity in your account. The initial goal is to first prove to YOURSELF that you can trade profitably and then improve on 50/50 and/or 1.25:1 BUT with NEVER exceeding your default risk on any trade.

A word from The Amazing Trader creator…

I am just a trader and can only speak from personal experience. As I have said before. the best endorsement I can give is that I have been trading a long time and cannot trade without The Amazing Trader. Nothing is certain in this business but I am pretty sure that once you try AT you will feel the same way.

At a minimum, you will never blow all your profits on any single trade and thereby avoid a situation that plagues many traders. At best, you will have all you need to trade profitably (i.e. The Amazing Trader + its trading strategies) with a risk management tool to instill discipline with a clear strategy designed to build equity in your account.  

Visit The Amazing Trader

Jay Meisler, creator

The Amazing Trader




Forex Trading News

Forex Research

Daily Forex Market News
Forex news reports can be found on the forex research headlines page below. Here you will find real-time forex market news reports provided by respected contributors of currency trading information. Daily forex market news, weekly forex research and monthly forex news features can be found here.

Forex News
Real-time forex market news reports and features providing other currency trading information can be accessed by clicking on any of the headlines below. At the top of the forex blog page you will find the latest forex trading information. Scroll down the page if you are looking for less recent currency trading information. Scroll to the bottom of fx blog headlines and click on the link for past reports on forex. Currency world news reports from previous years can be found on the left sidebar under "FX Archives."

Actionable trading levels delivered LIVE to YOUR charts

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

Mon 27 May 2019
AAGB/US- Holiday
Tue 28 May 2019
A 14:00 US- Consumer Confidence
C 13:00 US- Case-Shiller
Wed 29 May 2019
A 08:55 DE- Employment
AA 18:00 US- BOC Decision
A 18:30 US- EIA Crude
Thu 30 Mar 2019
AAEZ/CH- Holiday
A 12:30 US- Weekly Jobless
Fri 31 Mar 2019
AA 10:00 EZ- Flash HICP
A 12:30 US- Personal Income, Spending, Deflator
AA 14:00 US- Final Univ of Michigan

Global-View Affiliate Program

We are starting an affiliate program to market some of our products.

Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.

Put the word "affiliate" in the email subject line.

Contact us

Start trading with forex broker Markets Cube


Retail Forex Brokerage Changing!

Are you looking for your first broker or do you need of a new one? There are more critical things to consider than you might have thought.

We were trading long before there were online brokers. Global-View has been directly involved with the industry since its infancy. We've seen everything and are up-to-data with recent regulatory changes.

Our Best Brokers listing section includes:Forex Broker Reviews, Forex Broker Directory, Forex Broker Comparisons and advice on How to Choose a Forex Broker

If would like guidance, advice, or have any concerns at all ASK US. We are here to help you.

SEE Our Best Brokers List

Currency Trading Tools

  • Live rates, currency news, fx charts. 

  • Research reports and currency forecasts.

  • Foreign Exchange database and history.

  • Weekly economic calendar.

Directory of  Forex trading tools

Terms of Use    Disclaimer    Privacy Policy    Contact    Site Map

Forex Forum
Forex Trading Forum
Forex Forum + forex rates
Forex Forum Archives
Forex Forum RSS
Free Registration

Trading Forums
Currency Forum Guide
Forum Directory
Political Forum
Forex Brokers
Compare Forex Brokers
Forex Broker News
Forex Broker Hotline

Forex Trading Tools
Currency Trading Tools
Forex Database
FX Chart Points
Risk/Carry Trade Chart Points
Economic Calendar
Quicklinks to Economic Data
Currency Futures Swaps
Fibonacci Calculator
Currency Futures Calculator

Forex Education
Forex Learning Center
FX Trading Basics Course
Forex Trading Course
Forex Trading Handbook

Forex Analysis
Forex Forecasts
Interest Rate Forecasts
Central Bank Forecasts

FX Charts and Quotes
Live FX Rates
Live Global Market Quotes
Live Forex Charts
US Dollar Index Chart
Global Chart Gallery
Daily Market Tracker
Forex News
Forex Blog
Forex News
Forex Blog Archives
Forex News RSS
Forex Services
The Amazing Trader
Forex Opportunities
Forex Affiliates
Forex CopyTrading
GVI Forex