₦airaland Forum

The first thing we need to talk about is risk. I’ve put this topic in at the very beginning because it is the most important. Yes, more important than your trading system and your indicators, or whatever,
I have NEVER, repeat NEVER, seen anyone become consistently successful without exercising deligent risk management. Gamblers only get lucky for a while. Sometimes for weeks or even months, but the end result will be loosing their entire account.
Am always suprised  as to the reasons people fail to use prudent risk controls.Well,I think it’s the get rich quick mentality.
Anyway, there is no greater teacher than the market itself.  if you decide to ignore the risk aspect of trading "YOU WILL NOT MAKE IT AS A TRADER".

Risk Management aspect has 2 categories,
1. The Money Management.
2.Trade Management.
     
   The money management has to do with the amount of your capital you are risking from your account.Let me asvise you,dont ever risk more than 1-2% of your account on one trade.For example,if you have a $1000 account size, then 1% is $10 and 2% is $20, So if you stick to this advise,you will last long enough to correct every trading mistakes you have been making. but if you think you want to make 50% in  a day, then trust me the market will teach you and you will probably learn in a hard way.

   The main reason for this low risk is for you to plan ahead of loosing trades without getting killed, for example,if i risk only 1% of $1000 which is only $10 and i lost 5 trades in a roll,my total deficit will be 5% loss,Now compared to if am risking 20%, if am risking 20% and i lost 5 trades in a roll,i will be completely out of the game and also thats a Margin call for sure.

Forget about radio adverts saying you can make 30% a day.its possible but that means you will take incredible risk on your account for that to happen.
Dont let anyone deceive you.There is nothing like sure banker in trading,its just a probability issue on risk to reward ratio.So you have to prapare for losses ahead of time.Last month,i had 14 trades, 5wins,6 losses and 3 break even, when you look at this result,it look crazy but its not, 5 losses is equal to 5% but my 6 wins is equal to 24% beacuse i risk my money on high reward probability trades.Thats 19% win in 1months,now ask yourself "will the shares you bought pay you 19% a month?", i will leave this issues here.

Trade management is more like managing the trade when you are in the trade,reducing risks,moving stopsand taking partial profit and so on,i will talk more about that some other time.

Technical Analysis
Fundamental Analysis
Psycology of trading

i will talk about this issues,when i have time.

Happy trading
TUNDE
tundefxalone@yahoo.com