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🎯 500+ earning profits •🔥 ₹45,000+ Bonuses!Follow us onfor batch updates.
🎯 500+ Traders earning profits with our strategies •🔥 Limited Time: Free Bonuses Worth ₹45,000+Stay tuned for new batch updates onInstagram!
🎯 500+ earning profits •🔥 ₹45,000+ Bonuses!Follow us onfor batch updates.
By Green Red Candle LLP
Forex trading attracts millions of traders worldwide because of its high liquidity, 24×5 availability, and potential for strong returns. But behind the excitement lies a truth that every successful trader eventually embraces...
At Green Red Candle LLP, our core philosophy revolves around teaching traders to grow consistently, not recklessly. And the backbone of that consistency is risk management.
Whether you're a beginner or someone who has been trading for years, understanding risk management isn't optional — it's the difference between lasting in the market or blowing up prematurely.
Most traders obsess over indicators, chart patterns, or "secret" strategies. But the smartest traders — institutional desks, hedge funds, and seasoned professionals — spend most of their focus on risk, not entries.
Why?
Because every market condition, every currency pair, and every timeframe will eventually test your system. No strategy works 100% of the time. But strong risk management works every single day by:
Minimizing losses
Protecting profits
Reducing emotional decision-making
Allowing your edge to play out over time
Without risk management, even the best strategy becomes useless.
At Green Red Candle LLP, we simplify risk management into three essential pillars:
The golden rule in forex:
Never risk more than 1–2% of your capital on a single trade.
Why does this matter?
Because even a streak of losing trades won't wipe you out. The goal isn't to avoid losses; it's to survive them.
Example:
If your trading capital is ₹100,000:
This cap prevents emotional disasters like doubling the position size to "recover losses" — a trap many traders fall into.
A stop loss is not a limitation — it's your first line of protection.
Stop losses should never be placed randomly. They should sit at a point where your trade idea becomes invalid, such as:
Beyond recent swing high/low
Outside structure levels
Beyond liquidity zones
Past ATR-based volatility levels
A stop loss is not about avoiding losses; it's about controlling how big they can get.
Most traders choose lot size first and worry about risk later — this is backward.
Correct trading works the other way around:
Risk amount → Stop loss distance → Lot size
This ensures every trade has the same risk percentage, no matter the pair you trade. With proper position sizing, your risk remains stable even if volatility changes.
Let's look at a practical scenario that we teach inside our Green Red Candle trading programs:
Your capital: $2,000
Risk per trade: 1% → $20
Your analysis tells you to buy EUR/USD at: 1.0700
Stop loss is 30 pips below → 1.0670
Step 1: Determine dollar risk
You can lose $20 maximum.
Step 2: Convert risk into pips
30 pips = stop loss distance.
Step 3: Calculate lot size
For EUR/USD:
1 micro lot = ~$0.10 per pip
To risk $20 at 30 pips:
$20 ÷ 30 pips = $0.66 per pip → approx 6–7 micro lots
So you take 0.07 lots.
This one step prevents over-leveraging, emotional stress, and unnecessary losses. Small and controlled — that's how professional traders operate.
Moving averages and trendlines are important — but volatility is what actually controls your risk exposure.
A sudden spike in volatility can wipe out even a well-thought-out trade if your position size is too big or your stop loss is too tight.
This is why we teach tools like:
ATR (Average True Range): helps you decide safer stop loss distances
Session-based volatility: understanding how London, New York, and Asian sessions behave
News volatility: identifying high-impact economic events
Trading without recognizing volatility is like driving at 120 km/h during fog — you may feel confident, but you're one mistake away from a crash.
Even if a trader follows charts perfectly, the real challenge begins when emotions take control. Some common emotional risks are:
Trying to recover losses with bigger trades — a fast road to disaster.
The market moves constantly… but your edge doesn't appear constantly.
Chasing impulsive moves without proper setup.
A few wins can make traders forget their rules.
At Green Red Candle, our training emphasizes psychological stability as much as technical strategy.
A calm trader can execute risk management with discipline. A stressed trader cannot.
A trading plan is not just for beginners — it's a shield that protects your capital.
Here's what a complete risk-aware trading plan includes:
Valid entry criteria
Exit rules
Risk % per trade
Lot size rules
Maximum daily loss limit
Maximum weekly drawdown
A checklist before placing any trade
Traders with a plan grow steadily.
Traders without a plan depend on luck — and luck always runs out.
Most forex traders blow accounts not because they don't know technical analysis, but because they:
Take oversized positions
Trade without stop loss
Ignore market sentiment
Mismanage leverage
Trade impulsively
Chase losses
Don't understand risk-to-reward ratios
Winning traders, on the other hand, do something very simple:
They control risk first, and profit follows naturally.
Every trade should ideally target a minimum of:
1:2 RR (risk $1 to gain $2)
Even with a 40% win rate, you can still be profitable with a good RR.
This single concept can turn a struggling trader into a profitable one.
At Green Red Candle LLP, risk management isn't taught as a chapter — it is integrated into every lesson, every trading setup, and every discussion.
We focus on:
Building discipline
Understanding institutional price movement
Using position sizing formulas
Implementing structured trading plans
Avoiding emotional trading traps
Learning from real market scenarios
Using practical simulation and examples
Our goal is simple and clear:
Help you trade confidently and consistently — without blowing your account.
Forex trading rewards those who respect risk and punishes those who ignore it. Even the brightest strategy fails without risk control.
If you master:
How much to risk
Where to exit
How to size positions
How to remain emotionally stable
…you automatically become a more mature and profitable trader.
At Green Red Candle LLP, our mission is to guide you into this mindset — one where trading becomes a skill, not a gamble.
Protect your capital, and your capital will protect your future.
