Define your risk tolerance carefully

[SweetPrincess]

For you to be able to profit in Forex trading, you must make recognize the markets. For you to do that, you must first know know and recognize yourself. The first step of gaining self awareness is ensuring that your risk tolerance and capital allocation to Forex and trading are not excessive or lacking. You must carefully study and analyze your own financial goals in engaging Forex trading.

 

[Ary Barroso]

Absolutely, we traders have to understand our own trading strength! Then we need to select our trading targets based on our strength! No doubt, money management and risk managements are very important issue here, no one can success here without following perfect MM and RM.

 

[JimTatum]

Hi,
Most of the traders used 1% or 2% risk from account for each trade. Someone used certain amount of money to risk from account for each trade. It is better to trade with risk from the second method which is mentioned.