Its often the smallest things in life that effect the greatest improvement. The concept of thinking in terms of money risked as it applies to Forex trading is no exception. Its an extremely simple concept that can have a huge impact on your journey to becoming a successful trader.
Ive never met a successful Forex trader who didnt know how much money they were risking on any given trade. You may think thats an obvious statement, but a surprising number of traders dont think about how much money is at risk before opening a trade. This is because theyre using an arbitrary percentage to calculate risk, such as one or two percentage of their trading account balance.