Forex Trading Risk Management Video Tutorial (41 Minute)

Risk management is very important when you trade. With proper risk management you are never going to suffer a catastrophic loss. As a rule, don’t risk more than 2% on your account equity. When the trade moves in your favor, you should move the stop loss to breakeven and open more position always making sure that at no point of time you should exceed risk more than 2% on your account equity. If you follow this rule, you will see that your account will never suffer a big drawdown.

Another thing that you should avoid is making revenge trades when your lose a trade. Revenge trades are the most important cause of big drawdowns. Losing impairs your judgement. Once you have a losing trade, just take the day off and come back the next day. This rule will also help you avoid big drawdowns. Watch the video below that explains how to do risk management.