keep Your Risk Low and Operate a Very Strict Stop Loss | Successful Forex Trader (2024)

May 7, 2020 | 9:17 am | Forex Blog

May 7, 2020 | 9:17 am
Forex Blog

Most of my trades sit at 0.25% and operate a very strict stop loss that’s Jerry risk management.

Jerry.S 37 years old, United States.

“strict stop loss”.

Jerry has just successfully passed our evaluation programwith a great trading plan and has become aforex funded trader.

He is now one of our funded traders and is trading with a 24K forex funded accounton our platform.

His next mission is to reach 10% of profit and double his funds to 48K.

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

Click herefor more Inspirations lessons and interviews from ourprofessional funded traders

• How were you introduced to the Forex market?
  I was introduced to trading by a friend of mine who happened to think I might be good at it. I decided to give it a try, and well here we are. My first exposure to trading was Forex.

• Do you have a specific trading plan?
  Absolutely! Its a pretty simple one I trade the NY London cross over I assess my watchlist 30 minutes before NY open I check for any news related events I aim for between one and four trades per day depending on market conditions I risk between 0.25 and 0.5% per trade Aiming for a minimum risk to reward of 1:2 If a trade does not go in my favour almost instantly, I close the trade, cut my losses and move on I tend not to leave positions to run overnight, If I do, the trade must be well protected Compile a watchlist of potential opportunities for the following day Rinse and repeat.

• Tell us about your trading routine.
  I live in Florida USA so I mainly focus on trading the NY session I assess the market 30 mins prior to NY open for potential opportunities Once the NY session starts if there are any opportunities I’ll take my positions, if not I’ll go do something else, and check back in a few hours If I place a trade I will monitor it for a while to see how it progresses, if I’m happy I secure the trade and leave it to run, and check in on it periodically Spend time with my family, eat, exercise, play Fifa, play with my dog, sleep, wake up and do it all over again.

• Do you have any risk management techniques? If so, please, elaborate?
  I risk no more than 0.5% per trade, actually, most of my trades sit at 0.25% and operate a very strict stop loss. I believe once you keep your risk low, maintain discipline, a strict stop loss, restrict yourself from over trading and aim for a good risk to reward ratio of at least 1:2, you should be fine.

• What was your biggest challenge in trading, and how did you overcome it?
  My biggest challenge by far is having patience and not rushing my trade entries. I’m still not perfect at it, but understanding that if the trade leaves me, there will always be another trade, has helped me a lot.

• What was the key moment of your trading career?
  Understanding the importance of creating trading rules and sticking to them 100%.

• In your opinion, what are the most important characteristics for maintaining a steady trading career?
  Risk management and Discipline! I cannot stress this enough.

• Do you apply any mental/psychological routines while trading? Please elaborate.
  I don’t have a routine as such. But I try not to spend too much time looking at the charts. For me its a good idea to spend as little time as possible trading and more time with family and doing the other things I love. We trade for freedom, but yet a lot of traders become slaves to the charts, I am guilty as well, but it helps a lot with my mentals to step away from the charts as much as I can.

• What was your strategy for successfully passing The 5%ers’ Evaluation Program?
  For me, it came down to finding the right risk percentage for my trading strategy. It took some time, some trial and error, and some simple math, but once I found that sweet spot of 0.25% I just trusted my strategy. I believe it will differ greatly from trader to trader, but I’ll say it again, patience, and risk to reward is crucial.

• How long did it take you to become a consistent trader?
  It took me 3 months of trial and error to understand my mistakes and increase my consistency. Proper risk management was by far the most important change I made to become consistent. Once you manage risk well, you’ve won half the battle. Patience also played a huge part for me. Waiting for my rules to set themselves up and not rushing into a trade because it looks good on the surface, made a huge change in my win rate.

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