Trading Risk Management

Risk Management

Risk Management is a fundamental factor in trading. Without managing your risk, you’re essentially not managing your money. The Risk Calculator is the smarter easier way to manage risk and control your losses.

You manage risk when you get into your car each morning and drive to work – you make sure you put on your seatbelt, that the door is shut and that you stay alert and safe on the roads. Surprisingly, the risk element of trading sometimes takes a back seat… 

Risk Calculator can help protect your account by using risk management. You can lock in your % Risk and Ratio, allowing you to focus on trading. It also eliminates human error or ‘fat finger’ errors, so you can you can concentrate on your entries whilst still being confident that your account is protected.

One of the main benefits of the % Risk feature is that you can easily see which lot size to trade in your MetaTrader terminal, eliminating the fuss of having to manually calculate it yourself on a piece of paper or a regular calculator. You know the exact amount of money you are risking live on your MetaTrader terminal, giving you clearer visibility.

The risk/reward ratio function outlines the potential reward you can earn for every pound (or any other currency) you risk on an investment. You can easily view the ratios which will allow you to compare the returns of an investment with the risk associated to gain these returns, and improve your chances of making a profit.

Features

The Buy Calc and Sell Calc features are a fantastic time saver! They automate the calculation for a potential Buy or Sell trade, doing all of the hard work for you! – Risk Management with ease! 

One of the biggest factors to consider in forex trading is using stop loss. This is essentially your safety net. You can place a stop loss to close a trade when a specific price is met. The risk calculator ‘Stop Loss to Break Even’ feature will allow you to set your safety net and eliminate the inconvenience of having to pull and drag lines when trying to secure your trade and prevent potential losses. In addition, you will save time you can instead spend watching market movements. This way you can control your risk and prevent losing more than you can afford.

Setting stop-losses help you stick to your trading plan and not let your emotions take over your actions whilst you’re trading. It’s important to stay objective and manage your emotions, keeping to your strategy.

‘Plan the trade and trade the plan’. If you enter a trade without having a plan or knowing the points at which they will sell at a profit or loss. Your efforts will most likely fail. Your entry and exit strategies should be outlined and balanced It’s always important to plan and set realistic goals. The Risk Calculator will help you to do this, removing uncertainty and fear when making important trading decisions.

At the end of the day, you want to make a profit, right? It’s all about minimising loss and maximising gains. Incorporating the risk calculator into your trading plan can help get you there!

Find out more about Risk Calculator here