As a trader, do you stick to your risk management or maximise profits

[Asiska02]

A lot of traders usually have a proper risk management approach they use in the market which serves as their guide to protect their capital and also manage their resources well in the market. The strategy that a trader uses to enter a trade in the market is usually their guide to enter a new trade, when it meets all their criteria to be a trade worth taken for them.

As traders, asides the fundamental and psychological analysis aspect of entering a trade, when these two are not being put into consideration here, or let’s say none is happening at the time and not expecting any news such as NFP and the rest that could trigger the market.

Now, with just your technical analysis of the market, after your analysis meets all your criteria’s of taking a trade, an A+ setup trade in this case, do you increase your leverage since the setup is an A+ and will most probably have a 90% chance of success. Do you adjust your risk approach to such trades in order to maximise your profits or you just stick to your normal risk?

[Barikui1]

Now, with just your technical analysis of the market, after your analysis meets all your criteria’s of taking a trade, an A+ setup trade in this case, do you increase your leverage since the setup is an A+ and will most probably have a 90% chance of success.

No, that's a wrong move in my own opinion because once you increases your leverage, your liquidation price will became closer, so I would rather open another position with more money than increases my leverage that will not give the trade freedom to breathe.

Do you adjust your risk approach to such trades in order to maximise your profits or you just stick to your normal risk?

I do adjust in other to make more money when I am very confident that it's a winning trade, but like I have said already, I would rather open another position on the same terms, than increasing my leverage that will put my entire margin at risk of liquidation. The problem of most traders is that they don't know how to react in some certain situations in the market, they would rather exercise a particular idea or patterns in different situations which may likely not work out. So as a trader, it's very important to know how to react base on what is at hand, because it's going to save you a lot in the market.

[Gozie51]

Now, with just your technical analysis of the market, after your analysis meets all your criteria’s of taking a trade, an A+ setup trade in this case, do you increase your leverage since the setup is an A+ and will most probably have a 90% chance of success. Do you adjust your risk approach to such trades in order to maximise your profits or you just stick to your normal risk?

A winning strategy or analysis is better to be sustained, you don't change a winning team. Yes it is good to maximize profit but while doing that, you don't need to be carried away. Increasing leverage from 5x to 8/10x is still within range but to go from 5x to 40x because you feel sure of the trade is weigh high and dangerous, that can liquidate account as soon as you can understand what is happening. Once in a while a trade can take greater risk but at same time you should know how much of capital you want to risk and you apply that with SL 

[maydna]

I prefer to stick to my risk management but I can change that if I can see the way to maximise profits. But the chance still 50:50 because no guarantee the market will moves as we want so if I can stick to my risk, I don't have to face bigger risk if the market situation change.

I used leverage setup as I can afford so that is prevention for me to close the trade if somehow the market change the direction. But I am sure some traders will taking the chance to maximize profits although not many of them understand the risk can be big.

[Oshosondy]

Now, with just your technical analysis of the market, after your analysis meets all your criteria’s of taking a trade, an A+ setup trade in this case, do you increase your leverage since the setup is an A+ and will most probably have a 90% chance of success. Do you adjust your risk approach to such trades in order to maximise your profits or you just stick to your normal risk?

There is nothing called A+ when it comes to trading. Your analyses can not be A+ at all.

Instead of first using leverage, I will prefer to use 0.25 or 0.2 leverage to start trading. If the trading is not favoring me, I can average it to 1x and not more than 1x or u use grid trading to make it up to bit not more than 1x.

Although sometimes I go up to 2.5x.

Staring a trade with high leverage only means greed and impatience.

[Cryptohygenic]

Now, with just your technical analysis of the market, after your analysis meets all your criteria’s of taking a trade, an A+ setup trade in this case, do you increase your leverage since the setup is an A+ and will most probably have a 90% chance of success. Do you adjust your risk approach to such trades in order to maximise your profits or you just stick to your normal risk?

As one who is trading to maximize income and grows more in profits, sticking to a particular leverage is not always enough except you are contented with the expected returns after setting up your trades.
As some traders may react with their strategies, they sticks to their leverage even though their trading strategies is the so A1 but then, since maximizing profits is the goal, they tends to increase the risk of bigger profits by expanding the position size.
That is when you are so confident of your strategy but you still manages your trading capitals with what you can afford to risk.

[EarnOnVictor]

Now, with just your technical analysis of the market, after your analysis meets all your criteria’s of taking a trade, an A+ setup trade in this case, do you increase your leverage since the setup is an A+ and will most probably have a 90% chance of success. Do you adjust your risk approach to such trades in order to maximise your profits or you just stick to your normal risk?

Overconfidence in trading ruins accounts more than anything else, so it's even unprofessional for any trader to conclude that, since their trading setup has a higher chance of winning, they would now risk senselessly. It doesn't work that way. Personally, I'd ruined countless of accounts due to this, which shows that I've learned the hard way, and I will always advice traders to avoid that self-destruct approach in their trading. Using the approach of "risk against protection" can't be overemphasised, as it is the accurate means to have proper risk and account management.

[Big Dirams]

A lot of traders usually have a proper risk management approach they use in the market which serves as their guide to protect their capital and also manage their resources well in the market. The strategy that a trader uses to enter a trade in the market is usually their guide to enter a new trade, when it meets all their criteria to be a trade worth taken for them.

As traders, asides the fundamental and psychological analysis aspect of entering a trade, when these two are not being put into consideration here, or let’s say none is happening at the time and not expecting any news such as NFP and the rest that could trigger the market.

Now, with just your technical analysis of the market, after your analysis meets all your criteria’s of taking a trade, an A+ setup trade in this case, do you increase your leverage since the setup is an A+ and will most probably have a 90% chance of success. Do you adjust your risk approach to such trades in order to maximise your profits or you just stick to your normal risk?

One thing in this trading is that nothing is guaranteed at all, our strategy and analysis might be a reliable ones and even the fundamentals aspects too might be in good condition like the news but that doesn’t  still guarantee we should go recklessly because the market can shifts it movement at any time even if our source are reliable.

In my opinion it is better to not be greedy just because we want to maximize our profits, if we stick to maximizing the profits and overlook our risk management then if things doesn’t go our way then it will affects our equity so we need to just make sure we don’t loss more than we should on a single entry. Many opportunities comes in the future.
No matter how reliable our strategy looks it isn’t 100% guarantee that it would occur, our risk management is our savior.

[Zoomic]

You can carefully carry out your full analysis of the market, which includes fundamentals, technical and psychological analysis and become very convinced that the setup is A+ before entering and then the market quickly moves to a different direction.

You can't be too certain, that's why it's important to always stick to your risk management plan instead of chasing quick profits.

The fact that you've seen others do it and succeed shouldn't make you think you'll get similar result at all time. Unless you're trading with an amount of capital you can afford to lose if the market swings the opposite direction of your prediction, always make sure ti stick to the strategy that reduces your chances of getting liquidated.

[TheUltraElite]

An A+ setup is going to be tough in the first place.

I am one of those who sticks to spot trading and avoids leverage. The first one is easy to execute and tough to hold through but the returns are decent and the mental stress is minimal if you know what you are doing.

The second one carries the risk of draining out your capital over time in case your predictions are not going well and you will face the mental stress. Get-poor-quick is how I see it.

Now maximum profit is a wrong way to think because you need to play the long game, be in the trading scene for years to be able to amass enough of a capital + profit.

[Yorubek]

Now, with just your technical analysis of the market, after your analysis meets all your criteria’s of taking a trade, an A+ setup trade in this case, do you increase your leverage since the setup is an A+ and will most probably have a 90% chance of success. Do you adjust your risk approach to such trades in order to maximise your profits or you just stick to your normal risk?

A winning strategy or analysis is better to be sustained, you don't change a winning team. Yes it is good to maximize profit but while doing that, you don't need to be carried away. Increasing leverage from 5x to 8/10x is still within range but to go from 5x to 40x because you feel sure of the trade is weigh high and dangerous, that can liquidate account as soon as you can understand what is happening. Once in a while a trade can take greater risk but at same time you should know how much of capital you want to risk and you apply that with SL 

Of course, It is not right to take extra risks just because you have a good setup. An A+ setup is naturally very good, but it does not mean that success is 100%. There is a 90% chance of success, but sometimes 10% risk can bring big dangers, so it is very important to consider how much of our valuable money we can risk.

A truly good trader not only creates strong setups but is also 100% aware of risk management. There is no confirm of success in trading because the market is not always in the same state, so it is not right to take excessive risks in the hope of making more money. It is very important to be aware of risks, as this will protect yourself from big losses.

[sergiorus]

since the setup is an A+ and will most probably have a 90% chance of success.

No such thing as a setup with 90% chance of success, unless you are an insider. Things can always get ugly in a hurry.

Do you adjust your risk approach to such trades in order to maximise your profits or you just stick to your normal risk?

Again, unless you have an insider knowledge, all trades are the same and all of them have a high chance of you losing your money. Risk profile always stays the same because it's not only about the money but also about your mental health. You need to be in a calm state otherwise you won't last.

[Dr.Bitcoin_Strange]

Now, with just your technical analysis of the market, after your analysis meets all your criteria’s of taking a trade, an A+ setup trade in this case, do you increase your leverage since the setup is an A+ and will most probably have a 90% chance of success. Do you adjust your risk approach to such trades in order to maximise your profits or you just stick to your normal risk?

Honestly, sometimes I do this but most of the time I lose the trade because of overconfidence of thinking that the A+ setup can not fail. How I usually get hooked is that, assuming I'm targeting a 150 point move in that trade, after taking the trade, price might have moved like 50+ points away from my entry price which means good profit and then it will start to do correctional move before continuation, while I'm thinking that after the correctional move price continue in my direction, it doesn't go in my direction again most of the time but instead it will go and take my stop lose and continue in that opposite direction. So, in such a trade, if I had adjusted my risk approach in order to maximize more profit, I will be exposing my self to a bigger loss that can lead to fast liquidation or blowing of account.

Depending on the contract you are trading (BTCUSD for example), you can see an A+ set up, entered the trade and still lose the trade even though there was not a news release or a significant economic events that took place. That you have an A+ set doesn't mean the trade can not go bad, no matter how good a set up looks, don't take high risk that you can not accept.

[Frankolala]

I don't do that, I stick to my initial amount without increasing it because the market is volatile and nothing can be guaranteed. This is where traders get it wrong and allow greed to control their decisions. I stick to my normal risk because you don't know what the will be the next market movement. Only trade with the amount of money that you can afford to lose.

[Franctoshi]

As traders, asides the fundamental and psychological analysis aspect of entering a trade, when these two are not being put into consideration here, or let’s say none is happening at the time and not expecting any news such as NFP and the rest that could trigger the market.

Now, with just your technical analysis of the market, after your analysis meets all your criteria’s of taking a trade, an A+ setup trade in this case, do you increase your leverage since the setup is an A+ and will most probably have a 90% chance of success. Do you adjust your risk approach to such trades in order to maximise your profits or you just stick to your normal risk?

Tranders approach in regards to their decision either to maximise profit or stick to plans here would differ, for me I stick to plan, because even that A+set up of yours can still fail, so sticking to trading plans that doesn't expose my trading capital the more just remains the best approach to me regardless of what the setup is signalling at any given time.

[Zaka1221]

Trading is always the riskiest thing around, with a chance of falling down always high because it takes seconds to ruin anyone's career or account just because of this. Always staying with risk management is good enough because taking risks without an understanding of precautionary measures never gives good results. Thousands of people have made mistakes that hurt their lives and then had lessons, but things have never been on level for them to start and have positive results in search of maximum profit.
 I personally have made mistakes and then ruined my life. Now it's a long time, and I am not able to get back to my level where I was a few years back because now it's all changed and funds are not on the level from where I started. After having enough experience, I always suggest sticking with risk management and never making any mistakes because it's not easy to bring oneself back to a good level.

[justdimin]

I don't do that, I stick to my initial amount without increasing it because the market is volatile and nothing can be guaranteed. This is where traders get it wrong and allow greed to control their decisions. I stick to my normal risk because you don't know what the will be the next market movement. Only trade with the amount of money that you can afford to lose.

This is not something brand new; we have been saying this for nearly over a decade now, and people are still making this mistake unfortunately. We have told people that you should not risk money that you may need, because the market could go reverse and you would be in a bad position and forced to sell for a loss. And yet, people still deal with money that they may need.

I have even known people who put up their entire salary for a whole month, like literally if they lose it then they have no money left for the whole month to pay for anything, and they still put that on leverage and lost it. I do not get why they do that. I mean, I get it in the sense that they do say it, they say that if they are right even just once, they will be able to retire rich very young, but they do not realise that the risk-and-reward ratio is way off. You may get rich if you are right; that is true, but if you are wrong, then you have literally no money. What are you going to do in that case?

[Awaklara]

Tranders approach in regards to their decision either to maximise profit or stick to plans here would differ, for me I stick to plan, because even that A+set up of yours can still fail, so sticking to trading plans that doesn't expose my trading capital the more just remains the best approach to me regardless of what the setup is signalling at any given time.

We don't need to be greedy in trading. After all, we aren't gambling when we trade. Even if our estimates could yield pretty high profits, trading is still just a plan at that stage. Increasing risk by using high leverage looks more like a gambler's confidence in their chances of winning. In situations like that, the experience and calmness of both beginner and veteran traders will show.

[Hamza2424]

Now, with just your technical analysis of the market, after your analysis meets all your criteria’s of taking a trade, an A+ setup trade in this case, do you increase your leverage since the setup is an A+ and will most probably have a 90% chance of success. Do you adjust your risk approach to such trades in order to maximise your profits or you just stick to your normal risk?

That's a very straightforward question. Seems like you have faced this situation multiple times now. Well, I have also faced these situations multiple times, and if we follow our discipline and strategy, which tells us to not invest more than X% in one trade, I used X because everyone has a different value for it.

So, let's say I have 10% of all my capital that will be used to trade just one pair, but that one pair is now showing good signs of making me a good profit. So should I increase leverage or add more capital? In such situations, our discipline and strategy will tell us not to do it.

But our greed, our guts are saying, "Let's do it, and if anything bad happens, we will close the trade without wasting a second." But that is just bait. If you are experienced enough, you can increase capital or leverage, but always be careful and use an SL. Don't say, "I will close manually," because now you are risking more.

[Tungbulu]

I don't do that, I stick to my initial amount without increasing it because the market is volatile and nothing can be guaranteed. This is where traders get it wrong and allow greed to control their decisions. I stick to my normal risk because you don't know what the will be the next market movement. Only trade with the amount of money that you can afford to lose.

For me, I don’t think there’s anything wrong with someone attempting to tweak their strategy a bit sometimes, as long as it doesn’t become a habit or something that’s been done as a result of emotions. Although I’m not really a trader, but I’ve been around people who trade, so I know a thing or two. And just like in investing, if the action is based on strategic decision that aligns with your goal or initial plans, then it’s really okay, you mustn’t have to do the same thing over and over again everyday.