Develop the proper risk management skills and mindset so you don't become part of the 95% of new traders who end up losing all their money.

 

Risk Management

1

What Is Risk Management?

Risk management is one of the most overlooked areas of trading but it is one of the most crucial for success. Here’s why…

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How Much Trading Capital Do You Need For Forex Trading?

Here are a few things you should consider when figuring out how much money you should allot for trading.

3

Drawdown and Maximum Drawdown Explained

What would happen if you didn’t follow your risk management rules? You can find out the hard way, or you can read this example.

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Never Risk More Than 2% Per Trade

Still trying to figure out how much you should risk per trade? Here’s an illustration that could help you with your risk management rules.

5

Reward-to-Risk Ratio

Wanna learn a great way to increase your profitability? You can start by improving your reward-to-risk ratio.

6

Study Your Losses to Realize Gains

hy scrutinizing your losing trades can help you realize more gains.

The Number 1 Cause of Death of Forex Traders

1

Ignoring Leverage: Why Most New Forex Traders Fail

What exactly is leverage and how does it work? Make sure you get this concept down pat so you don’t get any surprises!

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Leverage and Margin Explained

What is the difference between leverage and margin? You don’t want to confuse those two terms and wreck your account.

3

Margin Call Explained

Everyone fears the dreaded margin call. What does this mean and what happens after you get it? Read on to find out

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Be Careful Trading On Margin

Make sure you fully understand how margin and leverage work in order to avoid getting a margin call. Here’s how you can do that:

5

See How Leverage Can Quickly Wipe Out Your Account

Check out this concrete example of a trader whose account got blown by the negative effects of leverage.

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Low Leverage Allows New Forex Traders To Survive

The more leverage you use, the less breathing room you have for the market to move before you get a margin call. Here’s an example to illustrate.

Position Sizing

1

Position Sizing

Knowing how to properly calculate your position size is crucial in risk management. Here’s what you need to calculate your position size.

2

Calculating Position Sizes

Here are some examples on how to calculate your position size whether your account denomination is the same as the base currency or not.

3

How to Calculate Your Position Size in Different Forex Pairs and Account Currencies

In this lesson, you will learn how to calculate your position size when your account denomination isn’t one of the currencies in the pair currency pair that you wanna trade.

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Summary: Position Sizing

No time to crunch the numbers yourself? Check out our position size calculator tool that can help you manage your risk well.