Every trader has a fear to risk his own money in forex, but if he skilled enough he can manage the risk and decrease his losses to minimum. Risk management tools and techniques are things that you need to survive in the volatile market. And there are many tips help you managing the risk.
The first thing is the stop loss technique. Stop loss is a must for every trader to reduce his loss and stay away from margin risk. Other thing is to know how to set 'Risk-Reward Ratio' according to the current market flow. The most important thing you have to understand is you never have to maximize the available margin. Keep it at 10 to 20 percent on each trade. And one last thing you have to avoid margin in uncertainity times.
Managing the risk on each trade is important ways to protect your account and yourself.
The first thing is the stop loss technique. Stop loss is a must for every trader to reduce his loss and stay away from margin risk. Other thing is to know how to set 'Risk-Reward Ratio' according to the current market flow. The most important thing you have to understand is you never have to maximize the available margin. Keep it at 10 to 20 percent on each trade. And one last thing you have to avoid margin in uncertainity times.
Managing the risk on each trade is important ways to protect your account and yourself.