Risk Management For Traders (Ultimate Guide)

In episode 353 of the Desire To Trade Podcast, we sit down with Michael Toma to discuss risk management for traders. You'll learn the main concepts of risk management in Forex trading. We also discuss risk management for prop firm trading. As you know there are statistics you need to respect to get funded and keep your account. Michael is an expert on managing risk in trading.

Join our Ultimate Prop Firm Trading program

Watch more videos featuring Michael Toma

Watch the video interview here

Topics Covered In This Episode

• [0:15] Introduction
• [0:55] Where to start to look at risk management as a trader
• [1:39] Why SL placement is only a tiny part of risk management
• [2:33] What is the Risk of Ruin in trading
• [3:40] What things can a trader do to influence their Risk of Ruin
• [4:46] Why win rate by itself doesn't matter
• [5:28] Why identification is really important for traders
• [7:07] What other metrics can you use to evaluate your trader performance
• [8:32] Why sometimes really high-performance metrics can be bad
• [9:51] What matters most to get a job at a prop firm
• [11:44] How can you prevent losing a funded prop firm account
• [13:25] How to know if your strategy works for a prop firm
• [16:11] What else should you look at in the current markets
• [18:36] How do news events affect your risk management
• [19:52] How you can work with Michael Toma
• and much more

What is one thing you are going to implement after listening to this podcast? Leave a comment below, or join me in the Facebook group!

Desire To Trade's Top Resources

• DesireToTRADE Forex Trader Community (free group!)
• Complete Price Action Strategy Checklist
• One-Page Trading Plan (free template)
• Recommended brokers:
  • EightCap (preferred Crypto and FX Broker)
  • AxiTrader (use our link to get a special bonus)
• Desire To TRADE Academy

About The Desire To Trade Podcast

• Subscribe via iTunes (take 2 seconds and leave the podcast a review!)
• Subscribe via Stitcher
• Subscribe via TuneIn
• Subscribe via Google Play
• See all podcast episodes

How To Find Michael Toma?

• MichaelToma.org
• email: michael@michaeltoma.org/
• Join our Ultimate Prop Firm Trading program

What is one thing you are going to implement after listening to this podcast episode? Leave a comment below, or join me in the Facebook group!