It is essential if you want to trade the forex market to be fully aware of forex risk management. But the good news is that there are proven forex systems that work as long as you can keep the money management aspects under control.
You need to make a concerted effort to minimise your risk when you trade, because ultimately that is the factor that is most likely to bring you long term profits. One of the key factors in establishing a method that suits both your personality and your forex trading strategy is to start out by paper trading different stop loss points and see how they would have worked out, and how your emotions were when you were forced by the system to either take a profit or cut your losses. This can be quite a telling exercise to go through, because as well as giving you a good idea about your internal psychology, it will also tell you a lot about how you react under pressure.
