Forex Trading risks and safety measures

Forex trading is one way in which you can earn good money, but there are certain risks involved. Actually the main risk is blowing of your invested capital.

85% of traders and mostly beginner traders end up depositing more than they actually withdraw. Kindly follow risk management as this one of the remedies to prevent capital blowing.

Making sure that you are on the right edge is trading with the amount you are ready to lose.
Other measures are also needed!!! Will be in the next article.

 

[moonchild]

Nice Article, when it comes to trading, beginners are always at the receiving end due to ignorance and lack of patience, they make a lot of mistakes and due to volatility of the Forex markets these mistakes cost money.

I think the number one buffer to risk management is risking what you can really afford to lose, you don't trade one lot size with a one hundred dollar account, you have to be realistic and set your targets so that they can be reachable at least for you.

You can also switch your account to cents account to allow you take risks, many brokers allow that, you can also use stop loss, to safeguard your account, I don't use stop loss then, but when I blew enough accounts no one advised me to start using it, I still know traders that don't use it at all and they are profitable.