Managing Trade Risk

Usually when you start to trade, you think that you can just enter a trade and watch it and make money. Unfortunately, there is so much more to trading. If you want to make some money at it, you'll have to learn how much you can trade at once in your account and how far you can let your troubled trades go before you have to cut them lose. This is called risk management.

Many traders like to just jump in with no thoughts about risk, they just want to focus on the rewards. The reality is that you can't win them all, so in order to make money on some kind of consistent basis, you have to have a system to manage your risk.

If any of these concepts sound new to you, you need to see Introduction to Forex Risk Management