In the context of foreign exchange trading, "success" is not just about making big profits but also because identifying the best trades, maximizing potential to earn profits, keeping losses at the lowest, and closing trades on a winning note. In this piece of information, we would be accessing tips on how to manage risk associated with trading forex.
The most successful forex traders are not the ones who take the best positions but the ones who are the smartest about money management and risk management besides being disciplined in their strategies.
They are the ones who never get emotional about losses or gains and always take calculated risks and make the best moves (allow profits to run and avoid losses at the earliest). Moreover, they have an exit strategy even before they take on a trade position so that desired profits can be "locked in" on a winning position.
These traders understand that limit orders and stop/loss orders constitute the pillars of a disciplined strategy to trade foreign exchange. By following such an approach, they remove emotion from the equation and let the forex market work for them. On the other hands, inexperienced or unsuccessful traders stay glued to their PC or laptop screens and make every effort in the world for juggling their positions in real time. In doing so, they miss out on important action points and thus let their emotions rule the trading decisions.
If you want to be successful, you need to first learn the basics of foreign exchange market, how the market works, what are the biggest mistakes of traders, and all the risks associated with trading forex.