Forex Trading Risk Management Strategy Guide

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All About Forex Trading Risk Management 

The basic principle of maintaining the Less Risk in Forex is only gain more Profit with less Loss, You can only gain profit by choosing the right strategy for your trading style, Every pair has different fundamental movement aspects by which we can analysis and the recent advancement in Forex Market industry can help you to take right decision on right time.

The Strategy here I want to discuss to reduce risk is based on Support and Resistance for Demand and supply analysis.

Previous OHLC prices can help you to determine whether its perfect time to buy or sell the Market or you have to wait for trend confirmation.

Whenever the Forex Pair you are interested in arrives in the resistance level short sell that Pair and then buy/long it near or above the support level.

Support and Resistance Indicator
Support and Resistance Indicator


Stop loss will be used as of Trailing Stop based on Support and Resistance:

you can use nearest support resistance level as a stop loss.

you can use 13 EMA line as a trailing stop loss.

The Market Structure of Forex Market is not always same you have to identify the which Area is most profitable to Buy or Sell 

The other strategy to reduce risk in Forex Market is based on RSI Indicator:

Always Use M30 Timeframe and Buy Level should be 20 and Sell Level should be 80, but here the twist come you have to use Pending Orders of around 500 Points distance for GOLD and Forex Pairs.

Let's assume if the Market of GOLD is at $1720 then if level 20 reached of RSI, Buy the GOLD at $1715 using Buy Limit and sell it with only $2 take profit which means at $1722. In this way you can gain good amount of profit in Forex Market.

Here are the Some Major Points you have to remember when trading Forex or any Commodities.

  • Always Make your daily target in Forex Market, As soon as the Target achieved Just close the MT4 terminal and do other healthy activities.

  • Always Use different type of Indicators and read market sentiments from ForexFactory and other Trading News site for daily fundamental analysis..

  • Always do your own research and analysis properly before jumping into any Market Hype.

  • Never ever afraid of Short term Fake out, this can be defined as Bull or Bear Trap.

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