Money Making Risk Management Rules
Post on 20-Jun-2015
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© 2012 Smart Forex Education
Presents
RISK MANAGEMENT
© 2012 Smart Forex Education
The Forex market is driven by the Emotions of traders. These include F E A R & G R E E D .
© 2012 Smart Forex Education
Preparation
Confidence
Adhering to your plan
Adaptable
Decision Making
© 2012 Smart Forex Education
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.
© 2012 Smart Forex Education
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.
© 2012 Smart Forex Education
Trailing Stop
Trailing stop involves trading:
In the direction of the long term trend.
SFE setup high.
Long term fundamental news.
Wealth management strategy.
© 2012 Smart Forex Education
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).
© 2012 Smart Forex Education
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
© 2012 Smart Forex Education
Overall Capital Risked
Per Trade
1% Risk Per
Trade (Low)
4% Risk Per Trade
(High)
2% Risk Per Trade (Medium)
© 2012 Smart Forex Education
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
© 2012 Smart Forex Education
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
© 2012 Smart Forex Education
© 2012 Smart Forex Education
© 2012 Smart Forex Education
© 2012 Smart Forex Education
© 2012 Smart Forex Education
© 2012 Smart Forex Education
© 2012 Smart Forex Education
www.smartforexeducation.com
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