Forex day trading can offer you a substantial amount of profit, or on the other hand, if you are inexperienced, can lose a tremendous amount of money. To be successful at day trading with Forex, you must be able to manage risk. Forex suggest to keep your risk on each trade at about 1% or less, which is small. The win rate should be above 50, and the higher your win rate is, general means that you will have more flexibility when it comes to risk/reward, which is always good and profitable.
- For day traders, both the win rate and the risk/reward on each trade matter.
- Leverage means you can take positions worth many times more than your investment.
- In very fast moving markets, slippage can substantially cut into net profits.
“This means if you have a $3,000 account, you shouldn’t lose more than $30 on a single trade. That may seem small, but losses do add up, and even a good day-trading strategy will see strings of losses. Risk is managed using a stop-loss order, which will be discussed in the Scenario sections below.”
Read more: https://www.thebalance.com/how-much-money-can-i-make-forex-day-trading-1031013
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