Forex Blog Articles

Risk Management Technique Never Rely on Only One Forex Broker

March 31, 2020 | 11:39 am | Forex Blog Articles
March 31, 2020 | 11:39 am
Forex Blog Articles
Risk Management Technique Never Rely on Only One Forex Broker

Don’t Risk More Than 1.5% of The Account Size is Wong Risk Management Technique

Wong Wai Chung

30 years old, Singapore.

“Risk Management Technique”.

Wong has just successfully passed our evaluation program with a great trading plan and has become a forex funded trader.

He is now one of our funded traders and is trading with a 40K forex funded account on our platform.

His next mission is to reach 10% of profit and double his funds to 80K.

We spoke with Wong about his trading plan, insights, and lessons gained while trading in the Forex market and on our platform as a funded trader.

Click here for more Inspirations lessons and interviews from our professional funded traders

 

  • How were you introduced to the Forex market?
    I first got exposed to trading via a youtube video.

 

  • Do you have a specific trading plan?
    My most profitable trading strategy makes use of RSI, Moving averages, Fib retracement and sentiment analysis to find high probability trades where the markets are oversold/overbought. When I find a trade signal that fits my risk reward of at least 1:2 and less than 1.5% of my account size, I will take the trade.

 

  • Tell us about your trading routine.
    I will start looking at my charts on tradingview to find potential entries during the Asian session. When the European session starts, I will wait out the volatility and only enter when the price indicates a clear direction.

 

  • Do you have any risk management techniques? If so, please, elaborate?
    Some of the risk management techniques I use never risk more than 1.5% of my account size, never putting my eggs with one forex broker in case they go bust, always ensuring that there is a 1:2 risk reward ratio on the trades that I take. Reducing the trade size on trades that I am less confident on or when the markets are highly volatile.

 

  • What was your biggest challenge in trading, and how did you overcome it?
    I used to not like to be wrong which results in me holding on to my losses for too long a time. However, I now look at trading as a process of price discovery and allow the markets to show me where it is going. I learned how to overcome it by always assuming that I could be wrong on any trade I take and analyze any positions I have open even those that are in profit. This allowed me to lock in my winners, let winners run longer, cut my losses short which results in higher win rates and ROI in my trading.

 

  • What was the key moment of your trading career?
    I will always remember the first year where I busted out multiple accounts. I slowly learned how to be a break even trader and eventually a profitable one. It is important for me not to have a losing month as much as possible. Remembering those days teaches me to close out my winning trades when I start to get greedy and cut my losses short on those that are in the red. I always remind myself that there are no short of trading opportunities and as long as I reduce my risk of ruin, I will always come out on top in the long term.

 

Risk Management Technique Never Rely on Only One Forex Broker

  • In your opinion, what are the most important characteristics for maintaining a steady trading career?
    A good healthy balanced lifestyle and a mindset of abundance. I do that by having multiple sources of income. I make over a $100,000/year in software engineering and am a profitable low stakes poker player at ~$15bb/hr in live games.

 

  • Do you apply any mental/psychological routines while trading? Please elaborate.
    I visualize scenarios opposite to whatever I am emotionally feeling at a certain point in time. For example, if I feel like I am being greedy I will pull up experiences where I have busted my trading account or poker bankroll and this normalizes my emotional scale so I can make rational decisions. During bad times where I feel like everything is going against me, I will pull up experiences where I made lots of money and remind myself that as long as I persevere and keep to my strategy, I will come out on top.

 

  • What was your strategy for successfully passing The 5%ers’ Evaluation Program?
    The evaluation was extremely fair in its dealings. I remember initially not being used to trading a smaller account and had several strikes in my risk management earlier on. Instead of dropping me from the program, they allowed me to continue with some slight adjustments in the profit target. I was in the green right from the get go so I didn’t have to introduce farther measures in risk management. But because the program has the longest evaluation period with the possibility of extensions, anyone can easily pass the evaluation by keeping their positions sizes really small and using strategies with the right risk reward profile.

 

  • How long did it take you to become a consistent trader?
    I became profitable after 2 years of trading. I work as a software engineer and am an avid poker player, but I got better at trading as I became better at the two activities as they require a logical and structured approach to problem solving. then I learned how to look at problems as a process of discovery rather than a yes/no, binary concept. This helped greatly in my approach to risk management as I started to weigh both sides of the coin and actively manage my risk in every trade that I take.

 

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