Risk management is key in any forex trading strategy. You can have the best indicators and the best strategy as far as finding entry and exit points, but if your risk management is lacking, sooner than later you will lose. And here’s why.
You will have to agree that there’s no perfect strategy that would make no losses. Sooner than later you will make a loss and how you handle it will define your success. A good risk management can save even the worst strategy and vice versa, can break the best one.
The first step of a good management is increasing and decreasing lots depending on trading success. If you win, increase the lot size, if you lose, decrease it. This simple method alone can have a big positive impact on your trading.