SIGNIFICANT LEVELS OF RISK MANAGEMENT
There are two major significant levels of risk management which must be practiced and managed with each trade a trader implements. · Capital Protection · Profit Protection Capital Protection Capital protection is ensuring of the security of trading capital via strategies tested, proven and guaranteed to produce the expected outcome. The idea of capital protection is a sound ethical trading practice that underlies the concept of money management. Capital protection seeks to imbibe in trader the defensive art in forex trading enterprise. Generating returns is important but not the bases of capital protection, though we seek to make as much as possible profits for each trade. The trading phrase-”cutting your losses and let…ride” is the bedrock or forex trading profit maximization tactic. Cutting loss before trading and not as soon as the trade goes against a trader is the focal p...