I'm sure by now that you've all heard the statement in relation to Forex trading risk: 'Only trade with the funds that you can afford to lose.'
I can tell you the first time I heard that statement. It was like my inner self said 'Yep, sure thing boss. No problem, only trade what you can afford to lose.' Hence I placed absolutely no thought to Forex trading risk.
Managing Forex trading risk makes perfect sense right? But the funny thing is, I immediately forgot that lesson the moment I started trading.
It is vital to pay attention to this as part of a traders education. Read on to understand why, and how you can avoid this especially relevant Forex trading risk mistake.Continue reading