Download pptx - Money Making Risk Management Rules

© 2012 Smart Forex Education

Presents

RISK MANAGEMENT


The Forex market is driven by the Emotions of traders. These include F E A R & G R E E D .


Preparation

Confidence

Adhering to your plan

Adaptable

Decision Making


Forex Risk Management Calculator

Money Management Calculator

Account Type Micro Account Balance $ 1.000,00

Lot Value $ 1.000

Currency Pair EUR/USD Risk % 2%

Pip Value $ 0.100 Capital at Risk $ 20,00

Stop Loss (Pips) 50 Position Size

(Lots) 4,00

Stop Loss Value $ 5,00 Position Value $ 4.000,00

True Leverage 4,00:1

Note: Contact me to receive the excel version to make changes to the input fields. © 2012 Smart Forex Education

SFE Risk Management Options

Different risk management scenarios:

1. Stop and one target.

2. Trailing stop.

3. Fixed stop and scaling out of postions.

4. Trailing stop and scaling out of positions.


Stop and One Target

This risk level involves placing a stop with one exit target:

Price action in a tight range (consolidation).

Low SFE setup ratio.

Fundamental news.

Income generation.


Trailing Stop

Trailing stop involves trading:

In the direction of the long term trend.

SFE setup high.

Long term fundamental news.

Wealth management strategy.


Fixed Stop and Scaling out of the position

Fixed stop and scaling out of postions:

Short term trading setup is in place.

Market lacking long term direction.

25% of your capital scaled out at predefined levels (using technical analysis).


Trailing Stop to Breakeven & Scaling Out of Positions

Trailing stop to breakeven and scaling out of positions :

Focused on trailing stop to breakeven.

Minimizing loss.

Reducing downside risk early.

Short term trades.

Multiple trading opportunites.

Income generation. © 2012 Smart Forex Education


Overall Capital Risked

Per Trade

1% Risk Per

Trade (Low)

4% Risk Per Trade

(High)

2% Risk Per Trade (Medium)


High Risk Trade 1% Account

SizeMedium Risk

Trade 2% Account Size

Low Risk Trade 4% Account

Size

0%

20%

40%

60%

80%

100%

Probability of the trade –Percentage risk per trade


Trading Template

Note: Contact me to receive the excel version.

Entry time Position

Strategy

# Ticket Lot size Forex

Entry price Stop Limit

Exit trade

Exit price Pip P/l

Total pip P/L Evaluation








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