moonchild
VIP Contributor
As the old saying goes, if you want to be a profitable trader have small wins, big wins, small losses and never a big loss, because a big loss can wipe your account completely at a go, so it is important to know how to set accurate stop losses or hedging orders if you want to go that route.
Risk management is the cornerstone of forex trading and should never be overlooked if you ant to protect your account from big loss. before entering a trade, you need to calculate the risk-reward ratio and set stop-loss and take-profit levels. the stop-loss level is the maximum amount of money you are willing to lose on a trade, while the take-profit level is the desired profit level. by setting these levels, you can limit your losses and protect your account.
If you follow the information above you will avoid taking major losses in your account and at best you will be taking small losses which can be avoidable if you take only a high probability trade, these things are very easy to follow it is just that as a beginner things might not seem clear to you, so you have to make these mistakes to learn from them.
Risk management is the cornerstone of forex trading and should never be overlooked if you ant to protect your account from big loss. before entering a trade, you need to calculate the risk-reward ratio and set stop-loss and take-profit levels. the stop-loss level is the maximum amount of money you are willing to lose on a trade, while the take-profit level is the desired profit level. by setting these levels, you can limit your losses and protect your account.
If you follow the information above you will avoid taking major losses in your account and at best you will be taking small losses which can be avoidable if you take only a high probability trade, these things are very easy to follow it is just that as a beginner things might not seem clear to you, so you have to make these mistakes to learn from them.
