WHY IS RISK IMPORTANT? part 2

Go to any broker’s home page, scroll right down to rock bottom, and you'll see disclaimers like “Trading Forex on margin carries a high level of risk…” and “do not invest cash you can't afford to lose”. Even the brokers and regulators need you to grasp the importance of risk.

But don’t simply take it from U.S.A. at FX Academy. Take it from the most effective traders out there. one in all the foremost triple-crown hedge fund traders in history, Ray Dalio, writes in his book, Principles, “If you're not defensive, you're not planning to keep cash.”

So however can we do set about really managing our risk? however can we get it on during a method which will place U.S.A. thereon path to being profitable and consistent?

You can do 3 things.

Trade with solely capital.

Manage the scale of your trades.

Make sure your profits square measure larger than your losses.

Let’s explore every of those things one-by-one within the next lessons inside this course.