RISK MANAGEMENT
By : DOLA 4U-FOREX
The trader can have the smartest trading system in the world, but still fail on Forex without a sensible risk management strategy. Risk management (RM) is a combination of multiple ideas to control the risk of losses. By limiting the risk, the trader insures he'll be able to continue to trade when things do not go as planned. It is the constant use of the risk management that makes a difference between a
Forex professional and a short-lived gambler.
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| RISK MANAGEMENT FOREX |
- Here are the basic RM principles a trader should comply with:
- Limit the losses
- Use correct lot sizes
- Beware using too much leverage
- Be aware of currency correlations
- Keep track of your trades ("trader's diary")
In this section you may find a lot of useful information on how to manage your FX trading risks properly.
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