Forex and risk management ppt


It is an easy concept to forex and risk management ppt for traders, but more difficult to apply. It is where true risk management is important.

Know when to cut your losses on a trade. Figuring out where to set your stop loss is a science all to itself, but the main thing is, it has to be in a way that reasonably limits your risk on a trade and makes good sense to you. Once your stop loss is set in your head, or on your trading platform, stick with it. It is easy to fall into the trap of moving your stop loss farther and farther out. The best rule of thumb is to be as conservative as you can. 5,000 to open an account with, but it is important to understand the risk of using larger lots with a small account balance.

Keeping a smaller lot size will allow you to stay flexible and manage your trades with logic rather than emotions. It is also important to understand correlations between currency pairs. The more controlled your risk is, the more flexible you can be when you need to be. Traders need to be able to act when those opportunities arise. Is There a Way to Completely Eliminate Losing Trades? How and Why Does It Happen?