Risk management is one of the most important pillars in trading. A trader should think about this before starting forex trading. This is not about how much profit a trader can make, but more important is how long a trader can survive in a highly competitive forex market. Often we see examples of cases where a trader who has a good trading strategy, but the transactions that do not even make a profit, but in the end even lose money. This can only happen if a trader has bad money management. Learn more about forex trading by seeing james edward complete currency trader review.
Mistakes that often occur are:
– Not installing Stop-Loss.
– Stop Loss is too small, so easily affected before the price reverses direction in accordance with the original forecast of the trader.
– Stop Loss continues to be widened in the hope that the trend will reverse in accordance with the original forecast of the trader.