The Forex market has a downside: you could lose. But even the downside has an upside: you cant lose much. If you pay attention to the principles of Forex money management, you can control how much you lose. And even if you lose half the time, in this market you can still make a profit.
First of all, understand this: you will lose sometimes, because in this or any market, everyone loses sooner or later. No one is perfect and no one calls every trade perfectly. There is no magic software or enchanted system that is right all the time, no matter what the sales materials say. So be prepared, before you ever begin trading, to lose some money.
But in the Forex market, you can only lose the price of the lots you purchased. Although that amount varies from broker to broker, in a mini account the average purchase price of one lot is U.S. $100. And thats it; $100 per trade is the absolute maximum amount you can lose per trade. If the trade goes south and the market moves against you, even if you set no stop-loss at all, the market maker or your broker will close it when the loss reaches $100. This is meant to protect their investment, but it protects you, too, and the...
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