Any pro forex trader know that getting a solid and profitable Forex trading strategy is not enough to make consistent profits in the forex market on the long run. You must know how to manage your capital and how to manage your risk in an effective way.
Today, I read a great article about how to manage risks in forex trading with an awesome technique explanined in the video below.
Here is a piece of the article:
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For many traders, reaching a point where they can move their stop loss to break even and let the remainder of their trade ride risk free is the ultimate in trade management. And that is a good approach for balancing capital preservation and growth.
However, I take a slightly different approach as I place a strong emphasis on account growth.
As price progresses in my direction, I use my pyramiding strategy to add to my position size while moving in my stop loss and closing a portion of my added positions to keep my risk exposure to 1% or less per position.
I have had tremendous success with this strategy as it allows me to preserve my capital while also multiplying my account in a short period of time. Read the full article: Risk Management Tips for Trading Forex