Volatility in the forex markets can bring ample opportunity to speculate and profit from forex price movements. However, there is always the possibility that your trades could go against you and this could net you a loss.
Losses are common for most forex traders, even for the most experienced, and the key to becoming a successful forex trader is to manage your risk. There are many things that you can do to increase your profit potential and reduce risks:
- Understand the risks involved in leveraged forex trading
- Keep up-to-date with market conditions
- Use Fundamental and Technical Analysis.
- Know when to close a trade and take a loss
- Use trading tools such as stop orders to manage risk