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How to measure risk in Forex

It seems incredible, but sometimes the simplest things can be the most difficult to accept and understand. While working in this exciting world of trading, I’ve met many people who have no idea how to manage an account, whether demo or even worse, a real account. I’m writing this article to shed light on how to work towards managing your risk.

Forex trading should be simple. Undoubtedly, those who make it difficult are usually the ones who have never traded the markets or been properly taught how to trade. Many first start with a demo account. It’s the best choice as a beginner and is offered by a broker. The first thing to do with a demo account is to “play” with it. The term “play” refers to meaningless trades and worse when they compare it to a casino, gambling in every trade and choosing a side. The beginner also risks amounts that have nothing to do with the reality of a real account.

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Andres Salazar