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  • Risk Management (Ii)

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    Joseph Ukoha
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    This document outlines risk management and money management procedures for fund trading. It provides four key guidelines: [1] Target five successful trades with the initial capital before taking on more risk; [2] Don't aim for too much profit per trade, setting stop losses; [3] Manage emotions and don't trade in a negative direction without analysis; [4] Follow principles like protecting principal, setting stop losses and take profits, examining signals before trades, and setting risk levels and profit targets per day. The overall message is to manage risk, money, and emotions strategically.

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    RISK MANAGEMENT (II)

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    This document outlines risk management and money management procedures for fund trading. It provides four key guidelines: [1] Target five successful trades with the initial capital before taking on more risk; [2] Don't aim for too much profit per trade, setting stop losses; [3] Manage emotions and don't trade in a negative direction without analysis; [4] Follow principles like protecting principal, setting stop losses and take profits, examining signals before trades, and setting risk levels and profit targets per day. The overall message is to manage risk, money, and emotions strategically.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    9 views2 pages

    Risk Management (Ii)

    Uploaded by

    Joseph Ukoha
    This document outlines risk management and money management procedures for fund trading. It provides four key guidelines: [1] Target five successful trades with the initial capital before taking on more risk; [2] Don't aim for too much profit per trade, setting stop losses; [3] Manage emotions and don't trade in a negative direction without analysis; [4] Follow principles like protecting principal, setting stop losses and take profits, examining signals before trades, and setting risk levels and profit targets per day. The overall message is to manage risk, money, and emotions strategically.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Suite 16B Galleria plaza, 20 INEC road, kpansia, Yenagoa. Bayelsa State.

    09036527708, 08155189002.

    RISK MANAGEMENT AND MONEY MANAGEMENT PROCEDURES


    (Strategies, Rules and Decision on fund Management Policy)

    (i) To every start-up account, always target five (5) good market
    trade (sure market) for every first principal capital before
    risking some market. [this will bring investment-confident on
    your investment (business)]

    (ii) Don’t target too much profit in the market.


    For short term trade For long term trade
    (200-300 pips) (500 pips )
    (Always set your stop-loss at each instant of time)

    (iii) Discipline (Managing my passion and emotion on trading):


    don’t place another trade on a market on a negative (-ve)
    direction. Unless it’s a sure market after a proper de-diligence
    is put to place on the market analysis.

    (iv) Money management principle/policy


    a) Risk management; don’t loss the principal capital no matter the
    situation of the market direction. Always secure the principal
    capital (PC) in every trade. Always set the appropriate lots size or
    volume required for each amount invested.
    b) Ensure you place stop-loss (SL) on some of the market; especially
    when there is a high-impact or Medium-impact news on the
    currencies and also ensure a take-profit (TP) is also set or put in
    place.
    c) Examine your trading signals and any indicator you are using to
    make sure they are predicting the right direction of the market
    before placing a trade in the market and also when placing a trade
    in the market, always allow the 1H-candle stick to close before
    entering the market for a sell or a buy direction; (Always enter any
    market at the closure of 1H-candle stick of any market).
    d) Setting out the risk-management in place i.e how much you want
    to risk in a particular market and also how much you want to
    make in terms of profit in each of the market for the day, this is
    the targeted number of pips.

    NOTE: Don’t go beyond your targeted number of pips.


    Make each day count, be Accountable; Always ask yourself what you
    have to gain for each day that passes-by.

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