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What is Risk Management in Forex?
Risk Management means controlling how much of your capital
you are willing to lose on a single trade-and how you protect your
account from emotional or technical disasters. It’s not about
avoiding losses. It’s about surviving them-and staying long
enough to win the war. Even the best traders lose trades.
But they survive because their losses are small and their profits
are larger.
Why Risk Management Matters
In Forex, the market is open 24 hours, volatile, and unpredictable.
Without risk management. A few bad trades can wipe out your
account. Emotional trading (revenge, greed, fear) can destroy
months of progress.
With risk management:
● You limit your damage when you’re wrong.
● You stay in the game long enough to benefit from your edge.
