Forex Trading For Beginners – Risk Management

Forex Trading For Beginners – Risk Management



When it comes to Forex trading, risk management needs to be your #1 priority! Register for our weekly FREE webinars at http://www.PipsUniversity.com!

In the financial investment markets whether it be Stocks, Options, Forex, Commodities ETC… The number #1 thing every investor needs to learn and love, is proper risk management!

Risk management to most new traders usually goes in one ear and out the other. They soon realize how important it is when they lose a big chunk of their money or even worse blow out their account.

In a way we think this is healthy for investors as long as the amount of money they lose is small. Every single Forex trader that has lost a lot of money or even lost their account, get’s that feeling stuck in their head and it scares many investors to never do it again.

The reason why we think it is a good thing is because, it’s good to get that feeling into your head so that you know how awful it feels, so that in the future you do everything in your power to make it never happen again, it’s better to learn the feeling with a small amount than a big amount.

Many Foreign Exchange investors have never learned from a profession trading education provider to teach them how their risk should be calculated.

They learn from sources online that give them a certain amount of pips or money to lose per trade and then they tell them to cut their losses.

This is the worst advice you can ever hear or follow, every single stop loss is different, so this means every single position size is different!

You see your risk management is calculated by how far your stop loss is, now if you watched this training video you saw how we find our stop losses! It’s always at the previous high or low based on the trend that is happening!

For uptrends you will want to put your stop loss at the previous low & for downtrends you want to put it at the previous high.

Once you calculate your stop loss in pip form, then you can go to the position size calculator used in this video or any other that you want online!

We always punch in the size of the account, the base currency of the account, how many pips away our stop loss is, the currency pair traded & finally our risk % which is only 1-2% per trade!

The reason why you need to calculate your risk like this is because, until a previous high or low is broken, the trend is still valid, this is why you can’t do it based off what you think is right.

Price action in Forex is king and understanding how to do a correct stop loss, is how you will cut down on your random losses that were not needed when you understand how trends work.

It will also help you learn proper tactics to keep your account safe by only losing 1-2% per trade, which is absolutely crucial to learn!

It’s all about the process and not the profits, it’s just like working out, if you had correct form for the last 5 years and were consistently making muscle gains each month, by now you would look absolutely fantastic!

Forex trading is the exact same thing, learn that it is all about the process of making it a full time living and not the profits you can make overnight.

If you had a $100 trading account and thought 10% risk wasn’t a lot of money to lose per trade, this means that you can only lose 10 times in a row before losing all of your money.

If you only risk 2% that means you can lose 50 times in a row before losing all of your money, 1% would mean you can lose 100 times in a row before blowing out your account.

The odds of losing 100 times in a row for us at PipsUniversity.com are not likely! This is great for trading because, investing is all probabilities of profits and not a guarantee so we need to keep our capital safe and trade smart with a directional bias!

You can learn EXACTLY how we attack the Forex market with our trading strategies at

www.PipsUniversity.com/Forex-Training-Course

We are 100% verified by MyFxBook.com so you can see exactly how precise we are with our Foreign Exchange investing and how strict our risk management actually is!

Hopefully this training video helps all of you and that it makes you see the power of our education!

Join us on social media for tons of market commentary and what trades we are taking ourself to see if you see anything you like in them yourself!

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28 Comments

  1. 3:25 LOVED the south park angry voice. favorite part of the video

  2. I want to learn I want to sign up for your school Nick when I get some extra money right now I have a 100.00 FXCM account when I get some extra money in June I'm going to sign up

  3. Doreen Ayala-Brooks

    I am a total newby to Forex. A week ago I had no idea what all those lines, squares meant. I have been watching numerous videos and reading tons of stuff. I must say this video has truly made me so confident that I can make some money. : )

  4. Hey nick im looking to get into forex i was a bit lost bro, i understood the stop lost cause it automatically helps you not lose. My name is Michael, im definitely looking to get started. 

  5. I'm very very new to this but one thing i came in with was wanting to understand defence because i understand any attack needs a great defence, thanks for a great vid and i should make contact soon, cheers nick

  6. It is a fact that 100% risk free trades are nonexistent, but proper risk management is vital to achieve success. Great video, THANKS!!!

  7. Ahhhh I finally understand the stop loss setting….thanks Nick!

  8. Dean Farebrother

    Great video.  I really like your presenting style.  Thanks.

  9. So im an complete noob at this, dont know what anything means and have never traded in my life. Can anyone send a link to point me in the right direction? Thanks :)

  10. Man, you are awesome! I started to trade a month ago. Before that I didn`t have any idea of trading… A lot of videos, posts, opinions and etc on the web. The way you explained that to me is actually the best way ever. Clearly understood everything and waiting for you to upload more of that stuff here in your youtube channel. How can I enroll your university, is there any special kind of class or just everybody has an access to your videos, lectures, webinars? Thank you andvance

  11. Could i use 4 hr 2hr for setups and 1hr for entry?

  12. #Forex_trading_without_indicators  
    Should watch! Simple great !

  13. What charts can I use to open position no longer then 2 days?

  14. Hey Nick, great video! How would you incorporate leverage into risk management? If I want to only risk 1% per trade, and I use 10:1 leverage, does that mean I'm risking 10% of my account? Thanks!

  15. How long are your positions open generally?

  16. Key to success! Great job man!

  17. Excellent explanation of risk management, the stop loss and position size explanation is huge for being successful! 

  18. Can you PLEASE make a https://www.hipchat.com for your students? It's free and supports mac, windows, ios and android :)

  19. I love your videos man! you got my sub.

  20. Mitrofan Ermakov

    You're such a G.

  21. fantastic work

  22. lol i love your vids

  23. you're really funny!

  24. You are brilliant! :]

  25. You Rock!

  26. THIS VIDEO WAS AWESOME.

  27. amazing song man.

  28. you are a genius xD

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