Risk Management is the answer

Risk management is an extremely fundamental pillar in Fx trading. If you want to become successful you need to deal properly with the risks.

 

what you think there is any difference between money and risk management ?

 

Good question. Risk management is like not taking the stroke poke until after enough people survived without adverse reactions (or the animals did OK in lab testing.) Money management is like stopping taking shots (NO BOOSTERS) after your body fights for its life and wins, after the first one.

And superlative to all this is DIVINE WARNING, like insider info, that will keep you out of danger at all times.

 

Money management is deciding how much of your portfolio to invest in an asset.
How much should I invest?

Risk management is deciding where your exit is if you are wrong.
How much am I prepared to lose?

 

That's really important in forex trading. I follow risk management along with upgrading new skills in forex.

 

I cannot agree more here.. also learned a lot from my mistakes of not using proper risk management!

 

but sometimes risk management works to fail , because there is nothing 100% in Forex trading and no one can predict this market with certainly.

 

Effective risk management involves setting stop-loss orders, diversifying portfolios and using leverage responsibly.

 

stop loss is a great technique but this is really a challenging issue to make a perfect a SL approach.

 

There is no perfect trading approach. You need to be tough to survive this game without loozing your mind. When in doubt, get out!!!!