Managing Risk in Forex Trading
Forex trading is often regarded as risky. Is this perception true or false? How does this affect our decision to trade currencies? What can we do to reduce our risk and avoid one of the majority of traders who lose money from trading.
Before we make a decision on how risky forex trading is, let's define what risk means. Risk is simply the variability of investment returns. If you graph the value of an investment portfolio over time, a low risk investment such government bond should have a smooth curve, while a riskier investment would have a more jagged curve.
The fact is that most beginning forex trader
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