Organizing

As we know, forex trading is a very risky business. In other words, a trader can lose capital, if the market rate changes to an unfavorable side. However, the threat of financial losses in trading cannot be totally ruled out. To receive earnings and minimize possible losses the corresponding risks need to be managed properly. Thus, risk management plays a critical role in trading on the currency market. It is necessary to find out what risk management means when it comes to trading on the forex market.

The psychology of trading is one of the cornerstones of success, ignoring it can lead to disaster. For example, Nick Leeson single-handedly bankrupted the 200-year-old Barings Bank (where even Queen Elizabeth II kept her savings, she lost 2 million pounds), and the inability to control emotions in trading led to such a disaster. Psychology in trading is important for everyone without exception – both for a beginner with a couple of hundred dollars and for a pro with a million-dollar deposit.