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  • Beginner
  • Intermediate
  • Advanced
  • Completion
  1. Beginner
    Early Stages for Beginners
    8 Topics
  2. Forex Terminology
    11 Topics
  3. Margin & Leverage
    2 Topics
  4. Personal Psychology Questions
    2 Topics
  5. Psychology for Beginners
    7 Topics
  6. Intermediate
    Identifying Scams
    2 Topics
  7. Brokers for Beginners
    5 Topics
  8. Technical Analysis
    13 Topics
  9. Market Structure
    5 Topics
  10. Completion
    Risk Management for Beginners
    8 Topics
  11. Fundamental Analysis
    9 Topics
  12. Advanced
    Using Indicators
    6 Topics
  13. Technical Analysis (Part 2)
    8 Topics

Risk Management

I know, after understanding technical analysis, you guys are ready to open a live account and start trading immediately. NOT SO FAST! This section alongside psychology is probably two of the most important sections here. Risk Management is exactly what it says: “managing your risk.” It’s making sure you don’t blow your account in 2 seconds, you’re not over-leveraging, and helps control your trading habits.

There’s a difference between trading and gambling. GAMBLING is when you just risk all of your money and there’s no type of “management” whatsoever. You’re rolling dice and hoping it lands on 7 or 11. That’s gambling. TRADING is making a few trades but making sure you’re taking CALCULATE RISKS over time and you’re controlling your risk and psychology throughout it all, regardless if you win or lose.

Example: Let’s say you have $1000 in your account. If you didn’t want to lose more than $50 at ANY point in time, that means you don’t want to risk more than 5% of your account. (5% of $100 is $50). That is essentially risk management. Make sure your account is ALIVE at the end of the trade because you can lose just as fast as you can win.