"Risk only what you can afford to lose" ! This is a common thought that is presented before traders especially new ones. Some traders use leverage too much and also make use of the offer given by the broker to the highest limit . This is stupidity because you have a home, family and they are more valuable than any amount of profit. So just beware.....
Anyone that is great responsibility and uses money that is not dispensable puts himself and family at risk. Forex success depends on money management. A good trader does not throw money in the air.
Yes, it is quite important to reduce the risk to the lowest extent possible. The less you lose, the more chances to succeed you have. The main rule is that you should risk with smaller amount than you will earn in case if the trade would be profitable. It is the most important principle of risk management each trader should follow. It is also necessary to develop a detailed set of rules describing the way you will manage your risk during all steps of trading process form opening the position to closing it with profit or loss. Of course, you should also be disciplined enough to follow there rules. Actually, many traders fail just ue to thelack of discipline. There are few approaches to improve your discipline during trading, so you should try them all to find one that works best for you.
The key is to understand how it really works and who is right to work with. I was losing funds to a broker and by the time i realised it, i had already lost $52000 which was over half of my savings. I met a friendly trader and she directed me to the recovery agent Mr Bart Kasch. He helped me recover all my money, every penny. Referred him to friends and colleagues already, you can contact him if you need help at [email protected]
