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It’s a sobering point 95% lose and lose quickly - only 5% win, could you be one of the winners? Only if you understand the key points in this article fail to understand there significance and you can say goodbye to your trading account…

Let’s start with the fact:

Trading is not a god given gift unlike being an Olympic athlete you don’t need any special advantage - anyone can learn to trade and the basics are simple.

So if this is true why does the vast majority lose?

For two simple reasons:

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Forex trading is lucrative because you can use leverage and most brokers will allow you to leverage your deposit by 200:1, while it can make you big money it can also see you wiped out quickly.

So how do you use leverage to seek big gains, while at the same time avoiding big losses?

Let’s take a look.

Risk per Trade

Most traders simply think their risk per trade is their expected return – their stop protection but this is rubbish. This is simply a mental guess and what may look on paper like a good risk to reward trade is not.

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You might have come across foreign exchange market- forex, FX, exchange rates, but still some points will not be cleared. Following are some details that will prove helpful for you to understand the confusing and complex terminology.

It is very important to know about exchange rate before going any further. In simple terms exchange rate is the price of one currency in terms of another currency. The exchange rate is the actual cost of the currency identical to any good or service bearing its individual price.

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