cTrader Desktop & Web: Risk management
The path to success in trading is paved by proper risk management habits
Protecting the capital should be an absolute priority for every trader. This is all the more true for beginners as they are the most prone to unnecessary mistakes. In this instance, more than ever, applies that the proper risk management can be the step on your path out of errors in trading.
One of the most common mistakes in trading includes a poorly chosen position size relative to the account size. We are speaking about a problem here that applies almost exclusively to leveraged trading positions in Forex. And if there’s something we can say about financial leverage it’s the fact that it can lead to bigger profits but also to losses that can exceed the overall account balance.