Keeping your money at a decent level is the biggest key to success. For example, if you lost 50% of the money in your account, then you would have to make back 100% just to be back at the starting amount. The following are some strategies to help you keep your money secure by keeping losses small and running big profits.
In order to cover the inevitable small losses, a trader knows he has to risk an amount that will make a difference in his/her account. For example if your risk percentage is 2% and your account is $1,000, then you are only risking $20. Do you really think that is going to make a difference in your account? Now, if you risk 10-20% on high odds trades you have the potential to make a decent profit. The key is to stay strong and don't go against the goals and/or stops you put in place. No, this is not foolhardy. It is simply risking an amount that will be beneficial.
Most traders make the common mistakes of trading too much, taking trades with low odds, and risking too little money. These basically set the trader up for failure. The successful trader simply trades less, makes trades with higher odds, and risks a little more of his/her money. These actions increase is chances of making a profit.
Due to the fact that Forex trading is based on taking risks, you have to make risks that will make a difference if you are going to make a decent profit. By failing to follow these strategies, a trader will slowly lose all his/her money and never find the big trend to follow, and will eventually fail completely.
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