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Saturday, November 12, 2011

Risk management techniques

When you trade, the foreign investor can double in forex capital, and not only make it risks losing profits, but also funds the investor as well. Average deviation from the expected results of determining the risks to investors in the financial market.
This type of deviation can achieve high profits, as well as a great loss.
Financial risk management does not provide guarantee a successful business, but it is important to compile parts of it. Process fraught with risks for each currency, this is the reason why the use of methods of public administration to reduce the potential loss.
      
1. Submit them to stop;

      
2. Investment in capital;

      
3. The trend line of trade;

      
4. Management of emotions.
Methods of risk management used after positioning the open. Ways of managing the main risks to provide compliance with the losses.
Stop-loss (literally means stop-loss) is the point in which a trader out of the market to avoid any tragic situation. You have to put stop losses on open positions, in order to prevent losses.
There are several types of signals to stop:


    
* Stop signal and determines the initial amount of the applicant or trader interest rate, which is prepared to lose. When prices move around the moratorium, and up to it, and the trader closes the position at a constant level, not to exceed the loss in advance by the merchant.
    
* Signal cut-off "staging" of when the price moves toward the site, and an indication of suspension to be determined, according to the preferences of the merchant. And should change direction, and if that price is an indication, should the trader out of the market, and the probability of making a profit (be in accordance with the prices when began to move).
    
* The dismantling of profit - a profit when it is purified, which was obtained, and the site have been locked.
    
* Signs of stopping times, which are during that time, in the market are unable to earn a profit from such steps, and then close the site.


Article in Arabic
article source: http://instaforex.com/ar/risk_management_methods.php 

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